We consider the notions of static and dynamic reasonableness of requests in a trust game experiment. We vary systematically the experimental norm of what is expected from trustees to return to trustors, both in terms of level of each request and in terms of sequence of the requests. Static...

Vendettas occur in many real world settings where rivals compete for a prize, e.g., winning an election or a competitive promotion, by engaging in retaliatory aggressive behavior. We present a benchmark experiment where two players have an initial probability of winning a prize. Retaliatory...

This paper presents an experimental study of dynamic indefinite horizon R&D races with uncertainty and multiple prizes. The theoretical predictions are highly sensitive: small parameter changes determine whether technological competition is sustained, or converges into a market structure with an...

We propose that the formation of beliefs be treated as statistical hypothesis tests, and we label such beliefs inferential expectations. If a belief is overturned through the build-up of evidence, agents are assumed to switch to the rational expectation. Rational expectations are shown to be a...

This paper discusses empirical evidence for interdependent preferences from the point of view of the neurosciences, of heritability studies, and of cross-cultural and developmental psychology: it shows how interdependent preferences are determined to a significant degree by environmental...

A neurobiological argument has been used to defend the measurability and interpersonal comparability of cardinal utility. If true, a strong case could be made for the practical relevance of utility-based social welfare functions. In this paper I demonstrate that the current evidence does not...