We experimentally investigate whether individuals can reliably detect cooperators in an anonymous decision environment by allowing participants to condition their choices in an asymmetric prisoner's dilemma and a trust game (i) on their partner's donation share to a self-selected charity, and...

In evolutionary models of indirect reciprocity, reputation mechanisms can stabilize cooperation even in severe cooperation problems like the prisoner's dilemma. Under certain circumstances, conditionally cooperative strategies, which cooperate iff their partner has a good reputation, cannot be...

If we take it that, at least in the social sciences, "realistic" implies "finite", then countless economic models involving infinitary assumptions must obviously be classified as unrealistic - for example, models with infinitely divisible goods, a continuum of traders, consumers optimizing over...

The evolution of trustworthiness as a major aspect of business ethics depends crucially on whether it can be signaled. If this is impossible, only opportunistic traders will survive. Whereas previous studies have analysed detection agencies (Güth and Kliemt, 1994 and 1998) or have substituted...