The paper presents the concept of an imitation equilibrium and explores it in the context of some simple oligopoly models. The concept applies to normal form games enriched by a reference structure specifying a reference group for every player. The reference group is a set of other players, whom...

This paper forwards a new way of accounting for the experimental evidence related to the Ultimatum Game. We argue that players in this game have reasons to be both fair and self-interested, but the balance between these two considerations cannot be expressed in terms of a tradeoff. We test our...

Individuals and two-person teams play a hidden - action trust game with pre - play communication. We replicate previous results for individuals that non-binding promises increase cooperation rates. But this does not extend to teams. Wh ile teams make non-binding promises to cooperate at the same...

Economists are increasingly interested in the cognitive basis of pro-social behavior. Using response time data, several authors have claimed that "fairness is intuitive". In light of conflicting empirical evidence, we provide theoretical arguments showing under which circumstances an increase...

Revealing the identities of contributors has been shown to increase cooperation in public goods games. In this paper we experimentally investigate whether this finding holds true when decisions are made by groups rather than individuals. We distinguish between groups in which members can discuss...

We experimentally study behavior in a simple voting game where players have private information about their preferences. With random matching, subjects overwhelmingly follow the dominant strategy to exaggerate their preferences, which leads to inefficiency. We analyze an exogenous linking...