Frustration, anger, and aggression have important consequences for economic and social behavior, concerning for example monopoly pricing, contracting, bargaining, traffic safety, violence, and politics. Drawing on insights from psychology, we develop a formal approach to exploring how...

Numerous experiments have shown that players cooperate in a prisoner's dilemma (PD) game. I contribute to this literature by showing that emotions might be the key to overcoming the coordination failure. I model emotions by generally distinguishing between two types of emotions: First, expected...

This study asks two research questions: who forgives, and how? Prior studies have shown that more agreeable and less neurotic people have a higher tendency to forgive others, but this study argues that these associations may be spurious because these studies measure forgiveness as a disposition...

Behavioural economists are increasingly understanding that humans are not completely self-interested or emotionless, but often exhibit “other-regarding” behaviour. We develop a game-theoretic approach in which players gain utility from their own material payoffs, but who also develop...