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While there is an extensive literature on the theory of infinitely repeated games, empirical evidence on how " the shadow of the future " affects behavior is scarce and inconclusive. I simulate infinitely repeated prisoner's dilemma games in the lab with a random continuation rule. The experimental design represents an improvement over the existing(More)
How do income shocks a¤ect armed con ‡ict? Theory suggests two opposite e¤ects. If labor is used to appropriate resources violently, higher wages may lower con ‡ict by reducing labor supplied to appropriation. This is the opportunity cost e¤ect. Alternatively, a rise in contestable income may increase violence by raising gains from appropriation. This is(More)
A novel experiment is used to show that the effect of a policy on the level of cooperation is greater when it is chosen democratically by the subjects than when it is exogenously imposed. In contrast to the previous literature, our experimental design allows us to control for selection effects (e.g. those who choose the policy may be affected differently by(More)
We use a novel experimental design to identify the strategies used by subjects in an infinitely repeated prisoners' dilemma experiment. We ask subjects to design strategies that will play in their place. We find that the strategy elicitation has negligible effects on behavior supporting the validity of this method. We study the strategies chosen by the(More)
This paper argues that low-stakes test scores, available in surveys, may be partially determined by test-taking motivation, which is associated with personality traits but not with cognitive ability. Therefore, such test score distributions may not be informative regarding cognitive ability distributions. Moreover, correlations, found in survey data,(More)
We develop a competitive equilibrium theory of a market for votes. Before voting on a binary issue, individuals may buy and sell their votes with each other. We define the concept of ex ante vote-trading equilibrium, and show by construction that an equilibrium exists. The equilibrium we characterize always results in dictatorship if there is any trade, and(More)
>IJH=?J We study the evolutionary robustness of strategies in innitely repeated prisoners' dilemma games in which players make mistakes with a small probability and are patient. The evolutionary process we consider is given by the replicator dynamics. We show that there are strategies with a uniformly large basin of attraction independent of the size of the(More)
We analyze how economy-wide forces (i.e.shocks to terms of trade, technology and endowments) affect the intensity of social conflict. We see conflict phenomena such as crime and civil war as involving resource appropriation activities. We show that not all shocks that could make society richer will reduce conflict. Positive shocks to labor intensive(More)
We present a model where groups attempt to exert influence on policies using both bribes (plata, Spanish for silver) and the threat of punishment (plomo, Spanish for lead). We then use it to make predictions about the quality of a country's public officials and to understand the role of institutions granting politicians with immunity from legal prosecution.(More)
We analyze a simple stochastic environment where policymakers can be threatened by " nasty " interest groups. In the absence of these groups, the policymaker's desire for reelection guarantees that good policies are implemented for every realization of the shock. When pressure groups can harass the policymaker, good policies will be chosen for only a subset(More)