In this note we establish that rational demand expectations willtypically not evolve in an evolutionary model. In an evolutionarymodel beliefs act like a commitment device to more aggressive be-havior. This commitment effect has the same direction for strategicsubstitutes and complements and...

The variable threat-bargaining model of Nash (1953) assumes that threats in the senseof binding commitments as to what one will do if bargaining ends in conflict, are chosenbefore bargaining. By comparison, late threats to be chosen after bargaining end in conflict,appear more natural and would...

In experimental bargaining with incomplete information, we vary the information distribution (symmetric and asymmetric), the direction of electronic prepaycommunication (no, one-way, and two way), and the electronic communication medium (email and video) Bargainig outcomes are influenced by the...