This paper introduces the possibility of signaling into a finite-depositor version of the Diamond-Dybvig model. More precisely, the decision to keep the funds in the bank is assumed to be unobservable, but depositors are allowed to make it observable by signaling, at a cost. Depositors...

We use a two-person extensive form bargaining game to examine individuals? trusting and reciprocal behavior and how those relate to their scores on a trust survey. In keeping with prior research, we find that the ?self-interested? outcome is rejected by a majority of individuals. People who...

This paper provides an explanation for the emergence of political extremism in an environment in which a change in “ré gime” requires an investment that benefits more than one player. We show that in order to mitigate the effects of free riding, players may choose extreme positions....