We study experimentally the effect of bargaining power in two sequential mechanisms that offer the possibility to trade … at a fixed price before an auction. In the “Buy-It-Now” format, the seller has the bargaining power and offers a price … effects of bargaining power on aggregate outcomes. There is, however, substantial heterogeneity within sellers. Sellers who …

favorable tie-breaking rules can reduce the discouragement effect and increase the designer's revenue. We test these predictions …

(ERA) is a first-price auction in which truthful bidding is encouraged by bonus payments. We test the robustness property …

This paper reports on experiments testing the viability of markets for cheap talk information. We find that the poor … quality of the information transmitted leads to a collapse of information markets. The reasons for this are surprising given … the previous experimental results on cheap-talk games. Our subjects provide low-quality information even when doing so …

For the procurement of complex goods the early exchange of information is important to avoid costly renegotiation ex … auctions if sellers are likely to have superior information about possible design improvements, if renegotiation is costly, and … if the buyer's bargaining position is sufficiently strong. Moreover, we show that negotiations provide stronger …

loss for both sides. One implication is informational homophily: a receiver can rationally prefer to obtain information …

In games with strategic complementarities, public information about the state of the world has a larger impact on … equilibrium actions than private information of the same precision, because the former is more informative about the likely … reasoning. Stated second order beliefs indicate that subjects underestimate the information contained in public signals about …