This paper investigates how the introduction of social preferences affects players’ equilibrium behavior in both the one-shot and the infinitely repeated version of the Prisoner’s Dilemma game. We show that fairness concerns operate as a ”substitute” for time discounting in the...

Players in economic situations often have preferences not only over their own outcome but also over what happens to fellow players, entirely apart from any strategic considerations. While this can be modeled directly by simply writing down final preferences, these are commonly unknown a priori....

This study investigates the relationship between an actor’s beliefs about others’ other-regarding (social) preferences and her own other-regarding preferences, using an “avant-garde” hierarchical Bayesian method. We estimate two distributional other-regarding preference parameters, α...

We expand upon the previous models of inequity aversion of Fehr and Schmidt [1], and Frohlich et al. [2], which assume that dictators get disutility if the final allocation of surplus deviates from the equal split (egalitarian principle) or from the subjects' production (libertarian principle)....

We study the evolution of strategic psychological capabilities in a population of interacting agents. Specifically,we consider agentswhich are either blind orwithmindsight, and either transparent or opaque. An agent with mindsight can observe the psychological makeup of a transparent agent,...

We propose a dual selves model to integrate affective responses and belief-dependent emotions into game theory. We apply our model to team production and model a worker as being composed of a rational self, who chooses effort, and an emotional self, who expresses esteem. Similar to psychological...

There is a large body of evidence showing that a substantial proportion of people cooperate in public goods games, even if the situation is one-shot and completely anonymous. In the present study, we bring together two major endogenous factors that are known to affect cooperation levels, and in...

We test the empirical content of the assumption of preference dependent beliefs using a behavioral model of strategic decision making in which the rankings of individuals over final outcomes in simple games influence their beliefs over the opponent’s behavior. This approach— by analogy with...

Can differences in cognitive reflection explain other-regarding behavior? To test this, I use the three-item Cognitive Reflection Task to classify individuals as intuitive or reflective and correlate this measure with choices in three games that each subject participates in. The main sample...

In terms of role assignment and informational characteristics, different contexts have been used when measuring distributional preferences. This could be problematic as contextual variance may inadvertently muddle the measurement process. We use a within-subjects design and systemically vary...