This paper provides experimental evidence on forward induction as a refinement criterion. In the basic extensive form, one of the two players chooses to play a battle-of-the-sexes game or to receive a certain payoff. According to forward induction, choosing to play the game is a signal about...

The authors study two-player, pie-splitting games in which one player knows the pie and the other knows only its probability distribution. The authors compare treatments in which incentive-efficient strikes (disagreements) are possible with alternatives in which efficiency forbids strikes. They...

Results from the Iowa Political Stock Market are analyzed to ascertain how well markets work as aggregators of information. The authors find that the market worked extremely well, dominating opinion polls in forecasting the outcome of the 1988 presidential election, even though traders in the...