We consider a Prisoner’s Dilemma model with a pre-play communication stage. Players get a disutility from deceiving others after sending a message of conditional cooperation. Each player’s realized lying aversion cost is private information. We prove existence and characterize the (unique)...

In cooperative games with transferable utilities, the Shapley value is an extreme case of marginalism while the Equal Division rule is an extreme case of egalitarianism. The Shapley value does not assign anything to the non-productive players and the Equal Division rule does not concern itself...