The implausibility of the extreme rationality assumptions of Nash equilibrium has been attested by numerous experimental studies with human players. In particular, the fundamental social dilemmas such as the Traveler's dilemma, the Prisoner's dilemma, and the Public Goods game demonstrate high...

This paper relates firm size and opportunism by showing that, given certain behavioraldispositions of humans, the size of a profit-maximizing firm can be determined by cognitiveaspects underlying firm-internal cultural transmission processes. We argue that what firms dobetter than markets –...