Auction theory has emphasized the importance of private information to the profits of bidders. However, the theory has failed to consider the question of whether or not bidders will be able to keep their information private. We show that in a variety of contexts bidders will reveal all their...

Policemen are known to support colleagues who are the subject of criminal investigations. While we might expect guilty officers to defend each other, why do law-abiding policemen defend those who have broken the law? We investigate under what conditions it is in the interest of a group to defend...

Policemen are known to support colleagues who are the subject of criminal investigations. Although we might expect guilty officers to defend each other, why do (otherwise) law-abiding policemen defend those who have broken the law? We investigate under what conditions it is in the interest of a...

One of the best known models of auction theory involves an informed bidder competing for a common value object against one or more uninformed bidders. Engelbrecht-Wiggans, Milgrom and Weber (1983) found an equilibrium to the game using very weak assumptions. They also claimed to have proved...

We propose a model where voters experience an emotional cost when they observe a firm that has displayed insufficient concern for other people's welfare (altruism) in the process of making high profits. Even when there exist few truly altruistic firms, an equilibrium may emerge where all firms...

We introduce a procedural model of risky choice in which an individual is endowed with a core preference relation that may be highly incomplete. She can, however, derive further rankings of alternatives from her core preferences by means of a procedure based on the independence axiom. We find...

We conduct two experiments of the claim that people are overconfident. We develop new tests of overplacement which are based on a formal Bayesian model. Our two experiments, on easy quizzes, find overplacement. More precisely, we find apparently overconfident data that cannot be accounted for by...