Level-k thinking and Cognitive Hierarchy have been widely applied as a normalform solution concept in behavioral and experimental game theory. We consider the extension of level-k thinking to extensive-form games. Player's may learn about levels of opponents' thinking during the play of the game...

We examine optimal information disclosure by an informed mediator through Bayesian persuasion in a bilateral ultimatum bargaining game with two-sided incomplete information and inequality aversion. The information changes how the responder attributes the bidder's aggressive offer, and hence her...

We propose and experimentally test a theory of strategic behavior in which players are cognitively imprecise and perceive a fundamental parameter with noise. We focus on 2 x 2 coordination games, which generate multiple equilibria when perception is precise. When adding a small amount of...

We propose and experimentally test a theory of strategic behavior in which players are cognitively imprecise and perceive a fundamental parameter with noise. We focus on 2 x 2 coordination games, which generate multiple equilibria when perception is precise. When adding a small amount of...

We introduce political salience into a canonical model of attacks against political regimes, as scaling agents' expressive payoffs from taking sides. Equilibrium balances heterogeneous expressive concerns with material bandwagoning incentives, and we show that comparative statics in salience...

We propose a framework for modeling the influence of normative considerations on decision-making and social interaction. Our key insight is that axiomatic models like those used in cooperative game theory can be reinterpreted as theories of moral reasoning and norm formation which describe the...

Gender differences in overconfidence have been extensively documented in the empirical literature, but the implications for labor market outcomes are not well understood. In this paper, we analyze how men's relatively higher overconfidence, combined with competitive job incentives, affects...

This paper studies how litigation and settlement behavior is affected by agents motivated by spiteful preferences under the American and the English fee-shifting rule. We conduct an experiment and find that litigation expenditures and settlement requests are higher for more spiteful...

We investigate whether a player's guilt aversion is modulated by the co-players' vulnerability. To this goal, we introduce new variations of a three-player Trust game in which we manipulate payoff vulnerability and endowment vulnerability. The former is the traditional vulnerability which arises...

Two sellers with differentiated products compete and coordinate in a market by setting price frames first in Stage 1 and price levels later in Stage 2. A consumer's purchase decision depends not only on the difference of the net values, but also on the difference of the price frames. An increase...