I consider repeated games with local monitoring: each player observes his neighbors’ moves only. Hence, monitoring is private and imperfect. Communication is private: each player can send different (costless) messages to different players. The solution concept is perfect Bayesian equilibrium....

We apply an indirect evolutionary approach to players’ perceived prize valuations in contests. Evolution in finite populations leads to preferences that overstate the prize’s material value and induce overexpenditure. We establish an equivalence between evolutionarily stable strategies and...

We consider preference evolution in a class of conflict models with finite populations. We show that whereas aggregate conflict effort is always the same in evolutionary equilibrium, larger populations have greater individual subjective costs of conflict effort.

One can restructure institutions, but if individual-level motivations for corrupt behavior are not understood, these restructuring may not be effective. We introduce an evolutionary-game modeling to deal with the problem of corruption driven by imitative behavior.

We investigate the role personality plays in Finitely Repeated Prisoner’s Dilemma (FRPD) games. Even after controlling for demographic factors such as race, course of study, and cognitive ability, we find that cooperative behavior is significantly related to the Big Five personality trait...

We show that in a preemption game of entry into a Cournot market, increasing the number of competitors beyond duopoly does not bring forward the time of first entry. We also show that all entries, except the first one, occur earlier than socially optimal.

There are N projects of unknown quality. We solve the problem of choosing the best n<N projects from this set when there is a finite time to allocate to learning their quality.

We experimentally study the effect of a third-person enforcement on a one-shot prisoner’s dilemma game played by two persons, with whom the third person plays repeated prisoner’s dilemma games. We find that when the third person can observe these two persons’ play, the possibility of the...

In a linear oligopoly model with antitrust enforcement, the optimal cartel price converges to the competitive equilibrium price. The set of sustainable cartel prices does not shrink to the competitive price. We identify necessary conditions for this counter-intuitive convergence result.

We model a vertically differentiated duopoly with quantity-setting firms as an extended game in which firms noncooperatively choose the timing of moves at the quality stage, to show that at the subgame, perfect equilibrium sequential play obtains, with the low-quality firm taking the leader’s...