Analysts make competing claims about when and how politicians can use fear to gain support for suboptimal policies. Using a model, we clarify how common attributes of fear affect politicians’ abilities to achieve self-serving outcomes that are bad for voters. In it, a politician provides...

Oligopolistic retailers decide on the initial inventories of an undifferentiated limited-lifetime product offered to strategic consumers. A manufacturer sets the first-period (full) price, while the second-period (clearance) price is determined by a market clearing process. The resulting...

We propose a solution concept for games that are played among hyperbolic discounters that are possibly naive about their own, or about their opponent's future time inconsistency. Our perception-perfect equilibrium essentially requires each player to take an action consistent with the subgame...

Human conduct is often guided by “conformist preferences”, which thrive on behavioral expectations within a society, with conformity being the act of changing one’s behavior to match the purported beliefs of others. Despite a growing research line considering preferences for a fair outcome...

Trust is indispensable to fiduciary fields (e.g., credit rating), where experts exercise wide discretion on others behalf. Can the shame from scandal sort trustworthy people out of a fiduciary field? I tested for the possibility in a charitable contribution game where subjects could be...

n this paper we propose a pluralistic and multi-dimensional ap- proach to cooperation. Specifically, we seek to show that, in certain settings, less unconditional forms of cooperation may be combined with more gratuitous ones. Starting with the prisoner’s dilemma game, the evolution of...

We study experimentally the effect of expectations on trustworthiness. Most subjects respond with untrustworthy behavior if they find out that little is expected from them. This suggests that guilt aversion plays an important role in inducing trustworthiness.