This discussion paper resulted in a publication in the <A href="http://onlinelibrary.wiley.com/doi/10.1111/jems.12037/abstract">Journal of Economics & Management Strategy</A>. Organization differ in the degree to which they differentiate employees by ability. We analyse how the effect of differentiation on employee morale may explain this variation. By comparing...</a>

In the past, many refinements have been proposed to select equilibria in cheap talk games. Usually, these refinements were motivated by a discussion of how rational agents would reason in some particular cheap talk games. In this paper, we propose a new refinement and stability measure that is...