This paper studies, theoretically and experimentally, the effects of overconfidence and fake news on information aggregation and the quality of democratic choice in a common interest setting. We theoretically show that overconfidence exacerbates the adverse effects of widespread misinformation...

The theory of infinitely repeated games lacks predictive power due to equilibrium multiplicity and its insensitivity to, for example, changes in certain parameters, the timing of players' moves or communication possibilities. We propose a new approach, which mitigates the shortcomings of the...

I study a relational contracting model, in which the agent's discount factor is fixed and known, whereas the discount factor of the principal is her private information. I find that, in the separating contract, information revelation is always immediate, whereas costly signaling continues for an...

We examine the prevalence of gradualist strategies and their effect on trust-building and economic gains in a setting with an infinite horizon, asymmetric information regarding the trustworthiness of receivers, and various levels of trust. The theoretical literature suggests that gradualist...