When an individual believes that peers are predominantly untruthful in a given situation, is he/she more likely to be untruthful in that situation? We study this question in a deception experiment patterned after Gneezy (2005), finding evidence that dishonesty is indeed contagious. We argue that...

The static Nash equilibrium solution for a discretized Bertrand-duopoly market with asymmetric constant marginal costs recommends that the low-cost firm should charge a price equal to the high-cost firm’s marginal cost, and thus steal the entire market. This sharp prediction holds true for any...