We study a public goods game with heterogeneous agents who care about their own payoff as well as of the player who receives the lowest payoff. The weight on own payoff varies across players, and is private information. We first develop a theoretical model and then test the predictions of our...

We establish that the Phillips curve is persistence-dependent: inflation responds differently to persistent versus moderately persistent (or versus transient) fluctuations in the unemployment gap. Previous work fails to model this dependence, so it finds numerous “inflation puzzles”—such...