We study trust games in a virtual world environment and contrast results with laboratory studies, with and without personal interaction enabled by the virtual world platform. Particular attention is given to the motives that drive behavior in the various environments and to issues that are...

Dominated strategies play a crucial role in game theory and its solution concepts. While empirical studies confirm that humans generally avoid dominated strategies, they also suggest that humans seldom believe others will avoid such strategies. Hence, the iterated dominance solution is not...