The labor-managed Mondragon cooperatives in the Basque country, and La Lega coops concentrated in North Central Italy, are grouped into leagues that enable them to reap economies of scale in key services such as R&D, marketing and finance. These leagues are relatively rare and there are fewer...

We analyse interethnic cooperation in an infinitely repeated prisoner’s dilemma when members of one group are unable to target punishment towards individual defectors from the other group. We first show that indiscriminate outgroup punishment may sustain cooperation in this setting. Our main...

Reciprocity is one of the main basic social relations that constitute societies. It consists of being favourable to others because others are favourable to you (and not from an exchange in the strict sense). It rests on three possible rationales: (1) balance (comparison, matching), often related...

While strong social ties help individuals cope with missing institutions, trade is essentially limited to those who are part of the social network. We examine what makes the decision to trust a stranger different from the decision to trust a member of a given social network (a friend), by...

The industrialization process of a country is often plagued by a failure to coordinate investment decisions. Using the Global Games approach we can solve this coordination problem and eliminate the problem of multiple equilibria. We show how appropriate information provision enhances efficiency....

While strong social ties help individuals cope with missing institutions, trade is essentially limited to those who are part of the social network. We examine what makes the decision to trust a stranger different from the decision to trust a member of a given social network (a friend), by...

This paper builds on an analytical tool for studying entrepreneurship in a new classical general equilibrium framework. The entrepreneurial economy model takes the consumer-producer economy model and makes explicit the role of the entrepreneur. This paper uses it to study entrepreneurial...

Coordination failures are at the heart of development traps. Although communication can reduce such failures, to date experimental evidence has primarily been lab based. This paper studies the impact of communication in stag hunt coordination games played by members of Senegalese farmer groups...

In this paper firm'S location decision and government investment plans in less-developed areas are interpreted as a coordination game with and without strategic uncertainty. The latter is distinguished from risk and is modeled by means of the choquet expected utility theory. For the case of no...