Pre-play face-to-face communication is known to facilitate cooperation. Various explanations exist for this effect, varying in their dependence on the strategic content of the communication. Previous studies have found similar communication effects regardless of whether strategic communication...

We introduce a two-player, binary-choice game in which both players have a privately known incentive to enter, yet the combined surplus is highest if only one enters. Repetition of this game admits two distinct ways to cooperate: turn taking and cutoffs, which rely on the player’s private...

Transparency in teams can facilitate cooperation. We study contribution decisions by agents when previous decisions can be observed. We find that an information chain, in which each agent directly observes only the decision of her immediate predecessor, is at least as effective as a...

We develop a model of school choice in which the demand for religious schooling is driven partly by the desire of parents to limit their children’s exposure to the influences of competing religions. This framework links the literature on the effects of religious market shares on the...

Three experiments are presented that compare alternative explanations to the coexistence of risk aversion and under-diversification in investment decisions. The participants were asked to select one of several assets under two feedback conditions. In each case, one asset was a weighted...

We show that even in very simple oligopolies with di¤erential information a (Bayesian) Cournot equilibrium in pure strategies may not exist, or be unique. However, we ?nd su¢ cient conditions for existence, and for uniqueness, of Cournot equilibrium in a certain class of industries. More...

Empirical studies estimating the effect of private school competition on student outcomes commonly use the share of Catholics in the local population as an instrument for private school competition. However, it has recently been argued that since this instrument is likely to be correlated with...

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Should countries follow counter-cyclical or pro-cyclical monetary policies? This paper documents that in contrast to developed economies, developing countries tend to follow pro-cyclical monetary policies. The paper then constructs a New-Keynesian small open economy model with wage rigidity and...