This paper relates firm size and opportunism by showing that, given certain behavioraldispositions of humans, the size of a profit-maximizing firm can be determined by cognitiveaspects underlying firm-internal cultural transmission processes. We argue that what firms dobetter than markets –...

One reason why firms exist, this paper argues, is because they are suitable organizations within which cooperative production systems based on human social predispositions can evolve. In addition, we show how an entrepreneur - given these predispositions - can shape human behavior within a firm....

This paper relates firm size and opportunism by showing that, given certain behavioral dispositions of humans, the size of a profit-maximizing firm can be determined by cognitive aspects underlying firm-internal cultural transmission processes. We argue that what firms do better than markets -...

<DIV><DIV><P>Over the last several decades, mathematical models have become central to the study of social evolution, both in biology and the social sciences. But students in these disciplines often seriously lack the tools to understand them. A primer on behavioral modeling that includes both mathematics...</p></div></div>

Evidence shows that real-effort investments can affect bilateral bargaining outcomes. This paper investigates whether similar investments can inhibit equilibrium convergence of experimental markets. In one treatment, sellers' relative effort affects the allocation of production costs, but a...

al behavior better explained statistically by individuals' attributes such as their sex, age, or relative wealth, or by the attributes of the group to which the individuals belong? Are there cultures that approximate the canonical account of self-regarding behavior? Existing research cannot...

We conducted an experiment to describe how social learners use information about the relation between payoffs and behavior. Players chose between two technologies repeatedly. Payoffs were random, but one technology was better because its expected payoff was higher. Players were divided into two...