In this paper, we provide an explanation of the democratic peace hypothesis, i.e., the observation that democracies rarely fight one another. We show that in the presence of information asymmetries and strategic complements, the strategic interaction between two democracies differs from any...

We analyze a dynamic model of agenda formation in which players compete in each period to put their ideal policies on the agenda. In each period, with some probability, a decision maker is called upon to take an action from the agenda. We show that in any Markov equilibrium of this game, players...

As Weber (1904) recognized, Calvinistic beliefs about predestination may constitute a powerful incentive for good works; an individual wishes to receive assurances about her future prospects of salvation, and good works may provide a positive signal about such prospects. These beliefs can in...