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We consider a Prisoner’s Dilemma model with a pre-play communication stage. Players get a disutility from deceiving others after sending a message of conditional cooperation. Each player’s realized lying aversion cost is private information. We prove existence and characterize the (unique)...
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Alchian and Demsetz's (1972) classic paper models team production as a public good. They claim detection of individual effort levels, rather than aggregate effort levels, reduces shirking (free riding). This chapter experimentally tests this claim. Participants are informed either about the...
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