We study the process of equilibrium selection in games when players have social preferences of the type discussed, among others, by Rabin (1993) and Segal and Sobel (2007). To this end, we employ a standard noisy version of the best response dynamics. We obtain several results concerning some...

An often-replicated result in the experimental literature on social dilemmas is that a large share of subjects reveal conditionally cooperative preferences. Cooperation generated by this type of preferences is notoriously unstable, as individuals reduce their contributions to the public good in...

The focus of this paper is on altruism and coordination among agents with different income levels. A special form of altruism (fairness based or ethical altruism) is investigated by means of experiments. The definition of altruism used here follows from A. Sen’s concept of obligation, i.e....