Contents
A brief introduction to game theory. Rules of the game and equilibrium concepts.
Social (other - regarding) preferences
Human sociality
Ultimatum and dictator games
Gift exchange and trust games
Public good games
Indirect reciprocity
What explains human sociality? Models of other-regarding preferences
The inequality aversion model
Fairness and reciprocity
The ERC model (Equity Reciprocity and Competition)
Models of behavioral game theory
Psychological game theory
Behavioral economics and social norms
Prospect Theory and Behavioral Biases
References:
Books:
Prerequisite: - Gibbons, R.: A Primer in Game Theory, Robert Gibbons, Pearson, 1992. Ch. 1, Section 1.1. Ch. 2, Section 2.1.A.
Dhami, S.: The Foundations of Behavioral Economic Analysis, Oxford University Press, 2016. Ch. 5, 6, 8, 12.
Camerer, Colin F., George Loewenstein, and Matthew Rabin, eds. Advances in behavioral economics. Princeton University Press, 2003. Ch. 8, 9, 10
Papers (list to be completed):
Attanasi, G., & Nagel, R. (2008). A Survey of Psychological Games: Theoretical Findings and Experimental Evidence. In A. Innocenti & P. Sbriglia (Eds.), Games, Rationality and Behavior. Essays on Behavioral Game Theory and Experiments (pp. 1–33).
Berg, J., J. Dickhaut and K. McCabe (1995). “Trust, Reciprocity and Social History.” Games and Economic Behavior, 10: 122-142.
Bolton, G.E. and Ockenfels, A. (2000). “ERC: a Theory of Equity, Reciprocity and Competition”, American Economic Review 90(1): 166-93.
Cinyabuguma, M., Page, T., & Putterman, L. (2006). Can second-order punishment deter perverse punishment? Experimental Economics, 9(3), 265–279.
Fehr, E. and Schmidt, K.M. (1999), “A theory of fairness, competition and cooperation”, Quarterly Journal of Economics, 114: 817-868.
Fehr, Ernst and Simon Gächter (2000). “Cooperation and Punishment in Public Goods Experiments.” American Economic Review, 90, 980–994.
Fehr, Ernst, and Urs Fischbacher. 2004. “Third-party Punishment and Social Norms.” Evolution and Human Behavior 25 (2) (March): 63–87.
Galbiati, R. and Vertova, P. (2008). "Obligations and Cooperative Behaviour in Public Good Games." Games and Economic Behavior 64(1), pp.146-170.
Henrich et al. 2005. ”’Economic Man’ in Cross-Cultural Perspective: Behavioral Experiments in 15 Small-scale Societies,” Behavioral and Brain Sciences, 28(6), pp. 795-815.
Hoffman, McCabe, Shachat and Smith (1994), Preferences, Property Rights and Anonymity in Bargaining Games, Games and Economic Behavior, 7: 346-80.
Markussen, T., L. Putterman and J.-R. Tyran (2016). Judicial Error and Cooperation. European Economic Review 89: 372-388.
Rabin, M. (1993), “Incorporating fairness into game theory and economics”, American Economic Review, 83: 1281-1302.
Extra Readings:
Feess E. and R. Sarel (2022). “Optimal fine reductions for self-reporting: The impact of loss aversion”, International Review of Law and Economics, vol. 70.
Fiala L. and M. Husovek (2022). “Using experimental evidence to improve delegated enforcement”, International Review of Law and Economics, vol. 71.
Grolleaua G., M. C. Mungan and N. Mzoughic (2022). “Seemingly irrelevant information? The impact of legal team size on third party perceptions”, International Review of Law and Economics, vol. 71.
Hylton K. (2023). “Mutual Optimism and Risk Preferences in Litigation”, Rev. Law Econ., forthcoming.
Massenot B., M. Maraki and C. Thöni (2021). “Litigation Spending and Care under the English and American Rules: Experimental Evidence”, American Law and Economics Review, vol.23(1): 164–206.
Rössler, C. and T. Friehe (2022). “Settlement Negotiations with Reference-Dependent Preferences”, American Law and Economics Review, vol.24(1): 171–202.
Salm M. and B. Vollaard (2021). “The Dynamics of Crime Risk Perceptions”, American Law and Economics Review, vol.23(2): 520–561.
Tor A. (2022). “The Law and Economics of Behavioral Regulation”, Rev. Law Econ., vol. 18(2): 223–281.