We introduce a game-theoretic model with switching costs and endogenous references. An agent endogenizes his reference strategy and then, taking switching costs into account, he selects a strategy from which there is no profitable deviation. We axiomatically characterize this selection procedure...

In the Ultimatum Game (UG) one player, named “proposer”, has to decide how to allocate a certain amount of money between herself and a “responder”. If the offer is greater than or equal to the responder’s minimum acceptable offer (MAO), then the money is split as proposed, otherwise,...

Prosociality is fundamental to human social life, and, accordingly, much research has attempted to explain human prosocial behavior. Capraro and Rand (Judgment and Decision Making, 13, 99-111, 2018) recently provided experimental evidence that prosociality in anonymous, one-shot interactions...

Attention has become one of the most scarce—and therefore most valuable—assets in modern economies. Humans now trade vast amounts of attention each day in exchange for an ever-growing variety of digital products and services. The global coronavirus pandemic drastically accelerated the...

Whether, and if so, how exactly gender differences are manifested in moral judgment has recently been at the center of much research on moral decision making. Previous research suggests that women are more deontological than men in personal, but not impersonal, moral dilemmas. However, typical...

Societal inequalities – mainly, economic – are a topical subject. Given the dominance of large business corporations in the US and Canada, an important question is about corporations’ role in shaping the socioeconomic trends, including inequality. "Beyond Shareholder Value - A Framework...

How do human beings make decisions when, as the evidence indicates, the assumptions of the Bayesian rationality approach in economics do not hold? Do human beings optimize, or can they? Several decades of research have shown that people possess a toolkit of heuristics to make decisions under...

Lies can have profoundly negative consequences for individuals, groups, and even for societies. Understanding how lying evolves and when it proliferates is therefore of significant importance for our personal and societal well-being. To that effect, we here study the sender-receiver game in...