The authors describe a classroom game that introduces the concept of compensating wage differentials by allowing students to negotiate over the assignment of jobs and wages. Two jobs are designed so that neither job requires special skills, but one is significantly more unpleasant than the...

Crime is frightening. It breeds emotional responses which can lead to counterproductive governmental policy. To allow a rational analysis of these important concerns, Criminal Dilemmas applies intuition from economics, political science, and game theory as a way to develop new perspectives about...

The assumption of self-interested behavior makes it difficult to explain cooperation among strangers. Economics experiments and game-theoretic analyses suggest that cooperation can arise from a willingness to punish noncooperative behavior, even at personal cost. Such behavior is often based on...