Understanding whether the size of the interacting group has an effect on cooperative behavior has been a major topic of debate since the seminal works on cooperation in the 1960s. Half a century later, scholars have yet to reach a consensus, with some arguing that cooperation is harder in larger...

How agents assess the (in-)tangible externalities that others might impose on them can strongly influence strategic interaction. This study explores mechanism design for agents whose externality assessments and private payoffs, exclusive of externalities, are all subject to asymmetric...

In a local interaction model agents situated on a circle play bilateral prisoners' dilemmas with their immediate neighbors and have three possible strategies: cooperate in all interactions (altruistic), defect in all interactions (egoistic), or cooperate with one immediate neighbor with...

We study conditional cooperation based on a sequential two-person linear public good game in which a trusting first contributor can be exploited by a second contributor. After playing this game the first contributor is allowed to punish the second contributor. The consequences of sanctioning...

How can we maximize the common good? This is a central organizing question of public policy design, across political parties and ideologies. The answer typically involves the provisioning of public goods such as fresh air, national defense, and knowledge. Public goods are costly to produce but...

Social dilemmas are central to human society. Depletion of natural resources, climate protection, security of energy supply, and workplace collaborations are all examples of social dilemmas. Since cooperative behaviour in a social dilemma is individually costly, Nash equilibrium predicts that...

We consider markets in which agents aupply one unit of time that is equal to the duration of the market. We show that a coalitional game can be generated by such a market if and only if the characteristic function of the game is superadditive. We also characterize the vectors of balancing...

This paper studies a population of agents, each of whom can be either an Altruist or an Egoist. Altruists confer benefits on others at a cost to themselves. Altruism is thus a strictly dominated strategy and cannot survive if agents are rational best-responders. We assume that agents choose...