We study team formation in real-effort experiments in which participants bargain over a jointly produced outcome depending both on effort and ability. Participants decide between undertaking a task alone or with another participant by releasing the minimum share of the future team outcome that...

In this article we examine the setting up of an eductive type of reasoning process in a negative feedback situation. We analyse a variant of a one-shot beauty contest game. Our results show a reasoning level of around 2 steps of introspection, which is enough to reach rapidly the rational...