level-k theory, and show that stability of both beliefs and actions is significantly lower. Finally, we estimate a …In this paper, we use experimental data to study players' stability in normal-form games where subjects have to report … beliefs and to choose actions. Subjects saw each of 12 games four times in a regular or isomorphic form spread over two days …

update their beliefs about the probability of being audited, both before and after audits are definitely withdrawn. We find … that when individuals have initially experienced systematic audits, they decrease both their beliefs and their … irregular, they maintain high beliefs about the probability of being audited and continue cooperating long after audits have …

update their beliefs about the probability of being audited, both before and after audits are definitely withdrawn. We find … that when individuals have initially experienced systematic audits, they decrease both their beliefs and their … irregular, they maintain high beliefs about the probability of being audited and continue cooperating long after audits have …

update their beliefs about the probability of being audited, both before and after audits are definitely withdrawn. We find … that when individuals have initially experienced systematic audits, they decrease both their beliefs and their … irregular, they maintain high beliefs about the probability of being audited and continue cooperating long after audits have …

we interpret as a level of cooperation. In the base model, there is an irreversibility constraint stating that this …

barriers to exit generated higher welfare overall as they fostered stability and prevented inefficient breakdowns in … breakdown of partnerships by studying a public good game with imperfect public monitoring and an exit option. In our experiment … excessive exit especially because subjects over-estimated the likelihood their partner would leave. Treatments with high …

supply disturbances. Combining this framework with reasoned conjectures on how policy-makers' beliefs have changed helps …