The defendant is either innocent or guilty, which she, not the court or prosecutor, knows. The court convicts the defendant whenever its posterior probability of her guilt - which depends on the evidence presented - is greater than . Evidence production by litigating parties is a costly...

We endogenize preferences using the “indirect evolutionary approach”. Individuals are randomly matched to play a two-person game. Individual (subjective) preferences determine their behaviour and may differ from the actual (objective) pay-offs that determine fitness. Matched individuals may...

We study the optimal auction problem with participation costs in the symmetric independent private values setting, where bidders know their valuations when they make independent participation decisions. After characterizing the optimal auction in terms of participation cutoffs, we provide an...