There are many situations where the best outcome is reached through co-operation and co-ordination of agents’ actions. Although this is the best collective outcome, economic agents may fail to implement such co-operative strategy. The reason for this failure may be lack of information about...

Should principals explain and justify their evaluations? In this paper the principal's evaluation is private information, but she can provide justification by sending a costly cheap-talk message. I show that the principal explains her evaluation to the agent if the evaluation turns out to be...

Human groups maintain a high level of sociality despite a low level of relatedness among group members. The behavioral basis of this sociality remains in doubt. This paper reviews the evidence for an empirically identifiable form of prosocial behavior in humans, which we call "strong...