The article investigates social interaction among individuals who differ in their privately known motivation to comply with moral norms that are collectively rational in the sense that they maximize welfare given the distribution of moral motivation in the society. This yields tractable models...

We propose a unified framework to study relational contracting and hold-up problems in infinite horizon stochastic games. We first illustrate that with respect to long run decisions, the common formulation of relational contracts as Pareto-optimal public perfect equilibria is in stark contrast...