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We include initial holdings in the jungle economy of Piccione and Rubinstein (Economic Journal, 2007) in which the unique equilibrium satisfies lexicographic welfare maximization. When we relax assumptions on consumption sets and preferences slightly, equilibria other than lexicographic welfare...
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This paper reports results from a laboratory experiment studying the role of asymmetries, both in payoffs and … equilibrium predictions. The main deviations from theory are: a) Subjects under-exploit their bargaining power by being more … probabilities exhibits systematic deviations from theory. This suggests that subjects do not fully grasp the subtle effects …
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