We study the perfect type-contingently public ex-post equilibrium (PTXE) of repeated games with incomplete information where players observe imperfect public signals of the actions and the map from actions to signal distributions is itself unknown. The PTXE payoffs when players are patient are...

Entry into entrepreneurship is a strategic act for individuals who seek an optimal way to exploit their human, social and financial capital. Trade-offs associated with this choice are influenced by institutional conditions. We use signaling theory, employment choice theory and theory on...

We examine how retention motives affect prosecutor behavior under different evaluation criteria. In particular, we analyze how prosecutors of differing capabilities respond in choosing which cases to take to trial and which to plea bargain. We show how different criteria distort the mix of cases...

Uncertainty in payoffs is a central feature of collective action in contentious contexts such as protests and revolutions. We integrate payoff uncertainty into a model of collective action. We model the “calculus of protest” of individuals who must decide whether to submit to the status quo...

In this paper, we offer a new theory for the economic demand of accounting conservatism, which emphasizes the signaling role of conservatism in a debt market with asymmetric information. In our model, accounting conservatism serves as a signal by which the borrower firm can convey their private...

Judicial torture to extract information or elicit confession was a common practice in pre-modern societies, both in the East and the West. Moreover, often it was applied not only on the suspects, but also on the witnesses and plaintiffs as well. This paper proposes a positive theory for judicial...

The common prior assumption is pervasive in game-theoretic models with incomplete information. This paper investigates experimentally the importance of inducing a common prior in a two-person signaling game. For a specific probability distribution of the sender’s type, the long-run behavior...

Decision analysis has traditionally been applied to choices under uncertainty involving a single decision maker. Game theory has been applied to solving games of strategic interaction between two or more players. Building upon recent work of van Binsbergen and Marx (2007. Exploring relations...