Behavioural economists are increasingly understanding that humans are not completely self-interested or emotionless, but often exhibit “other-regarding” behaviour. We develop a game-theoretic approach in which players gain utility from their own material payoffs, but who also develop...

Behavioral economists are increasingly debating the desirability of overconfidence for individual and social welfare. For example, in Gervais and Goldstein's (2003) model of teamwork, a two-player team consisting of one overconfident and one rational agent outperforms a team consisting of two...