Two players with conflicting interests make investments and then decide whether to trigger a conflict or maintain peace. In case of conflict, these investments determine the players’ fighting strength and hence their payoffs. In case of peace, preexisting common political institutions...

Two players with preferences distorted by the focusing effect (Koszegi and Szeidl, 2013) negotiate an agreement over several issues and one transfer. We show that, as long as their preferences are differentially distorted, an issue will be inefficiently left out of the agreement or inefficiently...

Understanding how capital flows within rural communities in sub-Saharan Africa can provide important insights on the nature of poverty and the effectiveness of financial intermediation interventions. In this paper, we use unique individual level savings and borrowing data to study the flow of...