We report the results of trust dilemmas that are modeled as non-cooperative n-person games evolving over time. As long as all the n players continue cooperating, their potential payoff increases exponentially over time. Simultaneously, the temptation to defect increases too, as the player who is...

We extend the sealed-bid k-double-auction mechanism from a single- to two-round game where offers are made simultaneously during each round. If an agreement is reached on round 1, then the traders realize their profit and the game is over. If not, equipped with information about the round 1 bids...

The sealed-bid k-double auction mechanism for two-person bargaining under incomplete information can be extended by providing a bonus for both traders if, and only if, an agreement is reached. Brams and Kilgour (1996) proved that there is a unique level of bonus, namely, half the difference...

Disagreements between psychologists and economists about the need for and size of financial incentives continue to be hotly discussed. We examine the effects of financial incentives in a class of interactive decision making situations, called centipede games, in which mutual trust is essential...

We consider mixed populations (N=21) of genuine (humans) and artificial (robots) agents, repeatedly interacting in small groups whose composition is changed randomly from round to round. Our purpose is to study the spread of cooperative or non-cooperative behavior in the population over time by...

A model of coalition government formation is presented in which inefficient, non-minimal winning coalitions may form in Nash equilibrium. Predictions for five games are presented and tested experimentally. The experimental data support potential maximization as a refinement of Nash equilibrium....