This ambitious book is the first to present a theoretical framework for a unified analysis of both behavioral and traditional economics. It explores the ultimate factors from an evolutionary perspective in addressing why humans are predictably irrational and proposes "adaptive rationality," a...

Experimental studies show that the Nash equilibrium and its refinements are poor predictors of behavior in non-cooperative strategic games. Cooperation models, such as ERC and inequality aversion, yield superior predictions compared to the standard game theory predictions. However, those models...

We introduce a simple game-theoretical model that captures the main aspects of the repeated interaction between an issuer and a credit-rating agency. It involves up-front payments of issuer-fees and direct publication of requested ratings. Due to pecuniary injuries for untruthful ratings, the...

Social motives are frequently used to explain deviations from selfishness in non-strategic settings such as the Dictator Game. Previous research has mainly focused on two-player games; the workings of social motives in multiplayer Dictator Games are less well understood. A core feature of...

Delegating bargaining to an intermediary agent is common practice in many situations. The proposer, while not actively bargaining, sets constraints on the intermediary agent's offer. We study ultimatum games where proposers delegate bargaining to an intermediary agent by setting boundaries on...