In this paper, we claim that agents confronting with new interactive situations apply behavioral heuristics that drastically reduce the problem complexity either by neglecting the other players’ incentives, or by restricting attention to subsets of “salient” outcomes. We postulate that...

To identify dual-process reasoning in giving, we exposed experimental participants making a charitable donation to vivid images of the charity’s beneficiaries in order to stimulate affect. We hypothesized that the effect of an affective manipulation on giving would be larger when we...

We present a model where each of two players chooses between remuneration based on either private or team effort. Although at least one of the players has the equilibrium strategy to choose private remuneration, we frequently observe both players to choose team remuneration in a series of...