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We experimentally examine how the incentive to defect in a social dilemma affects conditional cooperation. In our first study we conduct online experiments in which subjects play eight Sequential Prisoner’s Dilemma games with payoffs systematically varied across games. We find that few second...
Persistent link: https://www.econbiz.de/10014077010
This paper examines the usefulness of Kalai (2020)’s measure of the viability of Nash equilibrium. We experimentally study a class of participation games, which differ in the number of players, the success threshold, and the payoff to not participating. We find that Kalai’s measure captures...
Persistent link: https://www.econbiz.de/10014077192
Whether or not to vaccinate one’s child is a decision that a parent may approach in several ways. The vaccination game, in which parents must choose whether to vaccinate a child against a disease, is one with positive externalities (herd immunity). In some societies, not vaccinating is an...
Persistent link: https://www.econbiz.de/10013308109
We present a model where firms make competitive decisions about the optimal duration (or time to build) of their R&D projects. Choosing its project's duration, the firm can choose to become a leader or a follower, based on its R&D efficiency, the size of the R&D to be carried out and the degree...
Persistent link: https://www.econbiz.de/10010264154
We consider a differential game of a conflict between two factions who both have a desire to exact revenge. We show that, in contrast to conventional wisdom, the desire for revenge need not lead to escalation of conflicts. Surprisingly, in the open-loop equilibrium, the weaker faction exerts a...
Persistent link: https://www.econbiz.de/10010264332
In this paper we examine a model of terrorism which focuses on the tradeoffs facing a terrorist organization that has the ability to utilize either or both suicide and conventional terrorism tactics. The terrorist organization's objective is to successfully attack at least one target. Success...
Persistent link: https://www.econbiz.de/10010266043
countries with less secure property rights. The theory suggests that adjusted net saving estimates calculated by the World Bank …
Persistent link: https://www.econbiz.de/10010270457
We set out a model of production and appropriation involving many players, who differ with respect to both resource endowments and productivities. We write down the model in a novel way that permits our analysis to avoid the proliferation of dimensions associated with the best response function...
Persistent link: https://www.econbiz.de/10010270524
In this paper we explore the relationship between an equitable distribution of the cost shares in public-good provision on the one hand and the core property of an allocation on the other. In particular we show that it is an inhomogeneous distribution of cost shares that motivates some coalition...
Persistent link: https://www.econbiz.de/10010270530
We present a non-cooperative model of a family's time allocation between work and a home-produced public good, and examine whether the income tax should apply to couples or individuals. While tax-induced labor supply distortions lead to overprovision of the public good, spouses' failure to...
Persistent link: https://www.econbiz.de/10010270532