We experimentally investigate multiple notions of equity in ultimatum bargaining with asymmetric outside options. Building on the generalized equity principle formulated by Selten (1978), we derive three different equity rules that can explain 43% of all offers. Our within-subject design further...

Altruism among family members can, in some cases, inhibit cooperation by increasing the utility that players expect to receive in a non-cooperative equilibrium. To test this, we examine agricultural productivity in polygynous households in West Africa. We find that cooperation is greater -...

Previous experimental work provides encouraging support for some of the central assumptions underlying Hart and Moore (2008)'s theory of contractual reference points. However, existing studies ignore realistic aspects of trading relationships such as informal agreements and ex post...

Can households make efficient choices? The fact that cohabitation and marriage are partnerships for joint production and consumption imply that their gains are highest when household members cooperate. At the same time, empirical findings suggest that spousal specialization and labor force...

A matching model with labor/leisure choice and bargaining frictions is used to explain (i) differences in GDP per hour and GDP per capita, (ii) differences in employment, (iii) differences in the proportion of part-time work across countries. The model predicts that the higher the level of...