In this paper, we introduce the concept of payoff distortion in the standard prisoner's dilemma game when strategies are driven by psychological behaviors. This concept enables to take account each player's assessment of the other player's behavior and the asymmetry of information. We determine...

The paper targets the relationship between growth of cooperation and later growth of innovation at the regional level. Patent data for German regions and eleven subsequent years is used to identify collaborative activity as well as the innovative output in each region. The results confirm to...

We report on an experiment designed to explore whether and how anger affects future levels of cooperation. Participants play three consecutive one-shot games. In between two identical two-person public goods games there is a mini dictator game that, depending on the treatment, either gives or...

Often in cooperative situations, many aspects of the decision-making environment are uncertain. We investigate how cooperation is shaped by the way information about risk is presented (from description or from experience) and by differences in risky environments. Drawing on research from risky...

The standard theory in tax competition as one part of the broader field of fiscal competition uses an comparative approach by drawing parallels between privat and institutional competition. The paper argues that this approach ignores certain limits of institutional competition like transaction...

In this paper, we study a voluntary contribution mechanism with one-way communication. The relevance of one person's words is assessed by assigning exogenously the role of the "communicator" to one group member. Contrary to the view that the mutual exchange of promises is necessary for the...