<title>Abstract</title> The author presents a simple technique for teaching the Cournot model to first-year students. The approach involves demonstrating to the students that out of all rectangles with a common perimeter, the square has the greatest area. No use is made of derivatives. The same approach can be...

Gneezy (2005) reports evidence indicating that in some settings people do not like to lie. In many other situations people do not suffer when they lie. We argue that the theory of simple guilt can accommodate these observations.

Reciprocity can be a powerful motivation for human behaviour. Scholars argue that it is relevant in the context of private provision of public goods. We examine whether reciprocity can resolve the associated coordination problem. The interaction of reciprocity with cost-sharing is critical....

We develop, and experimentally test, a behavioral model of deal- making which includes binding contracts and informal agreements as distinct but related special cases. The key assumptions: people are mostly honest; they suffer costs of overcoming temptation to renege; and they tend to split gains...

Reciprocity can be a powerful motivation for human behaviour. Scholars argue that it is relevant in the context of private provision of public goods. We examine whether reciprocity can resolve the associated coordination problem. The interaction of reciprocity with cost-sharing is critical....

Pareto equilibria in multicriteria games can be computed as the Nash equilibria of scalarized games, obtained by assigning weights to the separate criteria of a player. To analysts, these weights are usually unknown. This paper therefore proposes ideal equilibria, strategy profiles that are...

We extend the consistency principle for strategic games (Peleg and Tijs (1996)) to apply to solutions which assign to each game a collection of product sets of strategies. Such solutions turn out to satisfy desirable properties that solutions assigning to each game a collection of strategy...

Because journals favor clear stories researchers’ may gain by engaging in scientific misconduct, ranging from shady practices like running more sessions hoping for significance to outright data fabrication. To set researchers’ incentives straight, we propose sealed-envelope submissions,...

Earlier contributions have shown that imposing common knowledge of rationality is problematic when rationality is defined as choosing an admissible best response. Here we instead impose common knowledge of rational reasoning and define the concept of rationalizable sets. General existence (for...