In a game with pre-play bilateral communication, messages may trigger moral incentives to honor promises or agreements. We hypothesize that individuals’ inclination to keep a promise is highest if the counterpart requited the promise. We interpret this as an inclination to honor agreements. We...

We perform a (psychological) game-theoretic analysis of cheating in the setting proposed by Fischbacher & Föllmi-Heusi (2013). The key assumption, which we refer to as perceived cheating aversion, is that the decision maker derives disutility in proportion to the amount in which he is perceived...