This paper investigates the dynamics of deception and retribution in repeated ultimatum bargaining. Anonymous dyads exchanged messages and offers in a series of four ultimatum bargaining games that had prospects for relatively large monetary outcomes. Variations in each party's knowledge of the...

Although contracts provide safeguards against risk, they can also signal low expectations for a relationship (e.g., suggesting a prenuptial agreement.) Three studies document how attempts to create more complete contracts, driven by a desire to effectively manage the potential pitfalls in a...

Several of the results reported here broadly support theories of sequential equilibria. In particular, at least four pieces of data indicate that game theory's structurally-oriented models predict some of the reasons for individuals' play in the prisoner's dilemma game: (1) more cooperation...

Although fairness concerns may be relevant, they appear to be too simple an explanation for why game theory's strong predictions for ultimatum games are so rarely supported. Self interested offerers want to avoid rejections; unpredicted, non-equilibrium behavior is more valuable and effective...

Greed is a classic topic in human development (Balot, 2001; Robertson, 2001) and it inevitably affects many of our choices and decisions. Although greed is typically viewed as uniformly negative and reprehensible, we propose that people's attitudes and opinions about greed are actually subject to...

Rather than acting as a safeguard, contracts may actually damage relationships. Using field and lab studies, we assessed the effects of contracts on contract formation, implementation, and ultimate outcomes. Studies 1 and 2 showed that the presence of a contract led people to anticipate more...

Because the choice to trust is inherently risky, people naturally assess others' trustworthiness before they engage in trusting actions. The research reported here suggests that the trust development process may start before the conscious assessment of trustworthiness, via the activation of a...