We develop, and experimentally test, models of informal agreements. Agents are assumed to be honest but suffer costs of overcoming temptations. We extend two classical bargaining solutions -- split-the-difference and deal-me-out -- to this informal agreement setting. For each solution there are...

We demonstrate that iterated elimination of strictly dominated strategies is an order dependent procedure. We also prove that order does not matter if strategy spaces are compact and payoff functions continous. Examples show that this result is tight.