How do interacting decision-makers make strategic choices? If they're rational and can somehow predict each other's behavior, they may find themselves in a Nash equilibrium. However, humans display pervasive and systematic departures from rationality. They oft􀀵en do not conform to the...

How do interacting decision-makers make strategic choices? If they're rational and can somehow predict each other's behavior, they may find themselves in a Nash equilibrium. However, humans display pervasive and systematic departures from rationality. They oft􀀵en do not conform to the...

Evidence from studies in international relations, the politics of reform, collective action and price competition suggests that economic agents in social dilemma situations cooperate more to avoid losses than in the pursuit of gains. To test whether the prospect of losses can induce cooperation,...