This paper investigates how the introduction of social preferences affects players' equilibrium behavior in both the one-shot and the infinitely repeated version of the Prisoner's Dilemma game. We show that fairness concerns operate as a 'substitute' for time discounting in the infinitely...

This paper summarizes the findings of two papers that examine the effect of environmental regulation on the production decisions and profits of polluting and green firms. Using a game-theoretic framework, we find conditions under which the green firm favors regulation (a standard finding), but...

This paper investigates behavior in finitely repeated simultaneous and sequential-move prisoner’s dilemma games when there is one-sided incomplete information and signaling about players’ concerns for fairness, specifically, their preferences regarding “inequity aversion.” In this...

This paper investigates a signaling entry deterrence model under learning-by-doing. We show that a monopolist’s practice of entry deterrence imposes smaller welfare losses (or larger welfare gains) when learning effects are present than when they are absent, making the intervention of...

We examine an incumbent's trade-off between the improved efficiency that business expansion facilitates and the signaling role that business expansion plays in conveying information to potential entrants about the state of demand. We demonstrate that both separating and pooling equilibria...

This paper investigates how the introduction of social preferences affects players’ equilibrium behavior in both the one-shot and the infinitely repeated version of the Prisoner’s Dilemma game. We show that fairness concerns operate as a ”substitute” for time discounting in the...