The most fundamental solution concepts in Game Theory Nash equilibrium, backward induction, and iterated elimination of dominated strategies are based on the assumption that people are capable of predicting others' actions. These concepts require people to be able to view the game from the other...

The most fundamental solution concepts in Game Theory Nash equilibrium, backward induction, and iterated elimination of dominated strategies are based on the assumption that people are capable of predicting others' actions. These concepts require people to be able to view the game from the other...

This paper discusses recent neuroeconomic evidence related to other-regarding behaviors and the decision to trust in other people's other-regarding behavior. This evidence supports the view that people derive nonpecuniary utility (i) from mutual cooperation in social dilemma (SD) games and (ii)...