I consider repeated games with local monitoring: each player observes his neighbors’ moves only. Hence, monitoring is private and imperfect. Communication is private: each player can send different (costless) messages to different players. The solution concept is perfect Bayesian equilibrium....

When individuals underreport their incomes, they take into account their private gains and moral losses, the latter depending on the acquaintances’ previous underreports. We prove that under quite natural assumptions the process globally converges to the symmetric steady state.

We experimentally study the effect of a third-person enforcement on a one-shot prisoner’s dilemma game played by two persons, with whom the third person plays repeated prisoner’s dilemma games. We find that when the third person can observe these two persons’ play, the possibility of the...

Entry decisions in market entry games usually depend on the belief about how many others are entering the market, the belief about the own rank in a real effort task, and subjects’ risk preferences. In this paper I am able to replicate these basic results and examine two further dimensions:...

Arad and Rubinstein (2012a) have designed a novel game to study level-k reasoning experimentally. Just like them, we find that the depth of reasoning is very limited and clearly different from that in equilibrium play. We show that such behavior is even robust to repetitions; hence there is, at...

We experimentally analyse simultaneous behaviour in a contest game and a public good game, whose endowment is shared. Competition for resources (i) almost eliminates overbidding, without affecting public good contributions and (ii) almost eliminates the behavioural spillovers between the games.

We provide supporting evidence from the laboratory for the Nash predictions of the homogeneous-good Bertrand model under asymmetric constant unit costs.

We conduct experiments with adolescent participants on repeated fixed play in three different zero-sum games which have mixed strategy minimax solutions. Further, we collect subject information on cognitive abilities and participation rates in competitive activities. We find the adolescents’...