Recent research suggests that while there are negative effects of betrayal aversion, that the presence of betrayal-averse agents is beneficial in reducing trusteesÕ willingness to betray trust. If true, then many common knowledge institutions may have adopted institutional rules and features...

Recent research argues “betrayal aversion” leads many people to avoid risk more when a person, rather than nature, determines the outcome of uncertainty. However, past studies indicate that factors unrelated to betrayal aversion, such as loss aversion, could contribute to differences between...

Cooperation between individuals requires the ability to infer each other’s mental states to form shared expectations over mutual gains and make cooperative choices that realize these gains. From evidence that the ability for mental state attribution involves the use of prefrontal cortex, we...

Recent research suggests that while betrayal aversion may have negative effects, the presence of betrayal-averse agents is beneficial in reducing trustees’ willingness to betray trust. In light of this, many common knowledge institutions may have adopted rules and features which mitigate the...