A theoretical model is adopted in order to explain incentives and actual safety behaviour for drivers, pedestrians and other road users which do not utilise motorised vehicles. A road user's outcome is supposed to be dependent on her individual actions and cares decided upon by other individuals...

This paper analyses the optimal combination of costly and costless messages that a Sender uses in a signaling game if he is able to choose among all equilibrium communication strategies. We provide a complete characterization of the equilibrium that maximizes the Sender's ex ante expected...

We consider a signaling game where White students and Black students compete for college admissions. All students have psychic costs that vary with their intrinsic ability and the level of performance. But Black students in addition face a cultural or psychological cost which varies with...

Public participation ranging from information sharing to decision-making remains central to equitable and effective water management. Involving directly and indirectly affected individuals in decision-making facilitates trust and can establish partnerships. It also helps ensure that vital...

We show that, in a multi-agent contract setting, the principal can effectively rule out tacit collusion among agents (i.e., “bad” equilibrium) by posting permanent job openings to an external labor market. That is, a simple “market-like” employment mechanism can yield collusion-proof...

Collaborators often invest unequal resources towards a common good. Without agreement on sharing that good, collaboration might devolve into parallel, possibly competitive, individual efforts. Reaching agreement requires bargaining. Before bargaining, collaborators independently decide how much...