This paper provides empirical evidence of favoritism by agents, where that favoritism is generated by social pressure. To do so, we explore the behavior of professional soccer referees. Referees have discretion over the addition of extra time at the end of a soccer game (called injury time), to...

The endogeneity of preferences implies that not only individual preferences—along with technologies, government policies, and the organization of society and markets—determine economic outcomes, but also that the economic, social, legal, and cultural structure of society affects preferences....

Understanding when and how individuals think about real-life problems is a central question in economics. This paper studies the role of inertia (inattention), state dependence, and learning. The empirical setting is a tariff experiment, when optional measured tariffs for local telephone calls...

The implications of the Minimax theorem are tested using natural data. The tests use a unique data set from penalty kicks in professional soccer games. In this natural setting experts play a one-shot two-person zero-sum game. The results of the tests are remarkably consistent with equilibrium...