We find suggestive evidence that emotional balance has an impact on probability weighting incremental to demographic controls. Specifically, low negative affectivity (implying high emotional balance) tends to be a characteristic of those whose probability weighting functions exhibit lower...

Previous research has discovered a curious phenomenon: groups cooperate less than individuals in a deterministic prisoner’s dilemma game, but cooperate more than individuals when uncertainty is introduced into the game. We conducted two studies to examine three possible processes that might...

In voting theory, monotonicity is the axiom that an improvement in the ranking of a candidate by voters cannot cause a candidate who would otherwise win to lose. The participation axiom states that the sincere report of a voter’s preferences cannot cause an outcome that the voter regards as...

Experimental evidence suggests that individual consumption has not only personal value but also enters the social part of the utility. Existing models of social preferences make ad hoc parametric assumptions about the nature of this duality. This creates a problem of experimental identification...

Prospect theory is increasingly used to explain deviations from the traditional paradigm of rational agents. Empirical support for prospect theory comes mainly from laboratory experiments using student samples. It is obviously important to know whether and to what extent this support generalizes...

Behavior in one-shot coordination games with common knowledge labels can be described by theories of salience and focal points. Behavior in repeated games, including coordination games, can be explained by theories of learning. This paper considers games in which both theories apply, repeated...

For strategic communication games à la Crawford and Sobel (Econometrica 50:1431–1451, <CitationRef CitationID="CR3">1982</CitationRef>) the paper shows that under some prior beliefs different equilibrium partitions of the state space can have equal cardinality. Hence, there can be different equilibrium action profiles with the same...</citationref>

The current paper is the first to report an experimental study of “Min- and Max-induced rankings” (MMIR), i.e., a family of set rankings that require preferences over sets to be induced from comparison of the best and/or worst elements within those sets. These MMIR do not perform well in...

A community faces the obligation of providing an indivisible public good that each of its members is able to provide at a certain cost. The solution is to rely on the member who can provide the public good at the lowest cost, with a due compensation from the other members. This problem has been...

There are two kinds of beliefs. If the ultimate objective is wellbeing (utility), the generated beliefs are “practical.” If the ultimate objective is truth, the generated beliefs are “scientific.” This article defends the practical/scientific belief distinction. The proposed distinction...