This paper studies the repeated Prisoner’s Dilemma in a local interaction setup. We construct a sequential equilibrium in pure strategies that sustains cooperation for suffciently patient players. The strategy is embedded in an explicitly defined expectation system, which is a more compact way...

We endogenize the threshold points in Granovetter’s threshold model of collective behavior (Granovetter 1978). We do this in a simple model that combines strategic complementarity and private information in a dynamic setup with endogenous order of moves. Looking at Granovetter’s model in the...

In this paper we propose to use Polya urn processes to model the emergence of conformity in an environment where people interact with each other sequentially and indirectly, through a common physical facility. Examples include rewinding video tapes, erasing blackboards, and switching headlights,...

This paper examines innovations to religious and non-religious service provision by religious organizations in India. We present a stylized Hotelling-style model in which two religious organizations position themselves at opposite locations to differentiate themselves on the religious spectrum...