Models of choice where agents see others as less sophisticated than themselves have significantly different, sometimes more accurate, predictions in games than does Nash equilibrium. When it comes to mechanism design, however, they turn out to have surprisingly similar implications. This paper...

We provide nonemptiness results of approximate interim cores with endogenous communication in large quasilinear economies, where every agent's informational size is small. We offer results for both replica and more general sequences of economies.

Improving cognitive function and reducing stress may yield important benefits to individuals' health and to society. We conduct an experiment involving a three-month within-firm training program based on the principles of mindfulness and positive psychology at three large companies. We find an...

In this paper, we investigate individuals' investment in status in an environment where no monetary return can possibly be derived from reaching a better relative position. We use a real-effort experiment in which we permit individuals to learn and potentially improve their status (rank). We...