In this paper we view bargaining and cooperation as an interaction superimposed on a game in strategic form. A multistage bargaining procedure for N players, the "proposer commitment" procedure, is presented. It is inspired by Nash's two-player variable-threat model; a key feature is the...

We analyze ways in which heterogeneity in responsiveness to incentives ("drive") affects employees' incentives and firms' incentive systems in a career concerns model. On the one hand, because more driven agents work harder in response to existing incentives than less driven ones-and therefore...

In this paper we study the role of incomplete ex ante contracts for ex post trade. Previous experimental evidence indicates that a contract provides a reference point for entitlements when the terms are negotiated in a competitive market. We show that this finding no longer holds when the terms...