We consider a dynamic model of conformity that permits both a conformist and non-conformist equilibrium. We provide conditions under which conformity can 'invade' a population. More precisely, starting from a non-conformist equilibrium, we show that the conformity of an arbitrarily small...

The conflict between pro-self and pro-social behaviour is at the core of many key problems of our time, as, for example, the reduction of air pollution and the redistribution of scarce resources. For the well-being of our societies, it is thus crucial to find mechanisms to promote pro-social...

We present a tractable generalization of quantal response equilibrium via non-expected utility preferences. In particular, we introduce concave perturbed utility games in which an individual has strategy-specific utility indices that depend on the outcome of the game and an additively separable...

Recent work highlights that cooperation in the one-shot Prisoner's dilemma (PD) is primarily driven by moral preferences for doing the right thing, rather than social preferences for equity or efficiency. By contrast, little is known on what motivates cooperation in the Stag-Hunt Game (SHG)....

Rationalizability is a central concept in game theory. Since there may be many rationalizable strategies, applications commonly use refinements to obtain sharp predictions. In an important paper, Weinstein and Yildiz (2007) show that none of these refinements is robust to perturbations of...

Costs and benefits of everyday actions are often not known beforehand. In such situations, people can either make a choice “without looking” at the payoffs, or they can “look” and learn the exact payoffs involved before making the actual choice. Recent studies suggest that the mere act...

This paper considers an intrapersonal game between a moderate cold self and a hot self with a higher marginal utility of consumption. Indulging in a tempting good -- eating the first chocolate from a bowl, for example -- induces the hot self and makes further consumption more likely. In...

This paper investigates if professional players follow the Minimax theorem in their strategies, using Major League Baseball playoff season data. Our empirical results show that baseball players do not optimize their strategies in the sense that their sequence of chosen strategies is predictable...

Prosociality is fundamental to human social life, and, accordingly, much research has attempted to explain human prosocial behavior. Capraro and Rand (Judgment and Decision Making, 13, 99-111, 2018) recently provided experimental evidence that prosociality in anonymous, one-shot interactions...

The value of information is examined in a single-agent environment with unawareness. Al though the agent has a correct prior about events he is aware of and has a clear understanding of his available actions and payoffs, his unawareness may lead him to commit information processing errors and to...