Negotiations frequently end in conflict after one party rejects a final offer.In a large-scale internet experiment, we investigate whether a 24-hour coolingoffperiod leads to fewer rejections in ultimatum bargaining. We conduct astandard cash treatment and a lottery treatment, where subjects...

Sick-pay is a common provision in labor contracts. It insures workersagainst a sudden loss of income due to unexpected absences andhelps them smooth consumption. Therefore, many governments findsick-pay socially desirable and choose to mandate its provision. Butsick-pay is not without its...

It is difficult to disagree with Vernon Smith's (2010) assessment of thestate of the art in experimental economics. It is informed by the experienceof someone who was there, right at the beginning of experimental economics.Some of the problems he discusses, like the frequent failure of backward...

We introduce a generalized theoretical approach to study imitation models and subject themodels to rigorous experimental testing. In our theoretical analysis we find that the differentpredictions of previous imitation models are due to different informational assumptions, notto different...

Recently there has been much theoretical and experimental work on learning in games. However, learning usually means "learning about the strategic behavior of opponents" rather than "learning about the game" as such. In contrast, here we report on an experiment designed to test whether players...

We use an experiment to explore how subjects learn to play against computers which are programmed to follow one of a number of standard learning algorithms. The learning theories are (unbeknown to subjects) a best response process, fictitious play, imitation, reinforcement learning, and a trial...

We introduce a generalized theoretical approach to study imitation models and subject the models to rigorous experimental testing. In our theoretical analysis we find that the different predictions of previous imitation models are due to different informational assumptions, not to different...

We introduce a generalized theoretical approach to study imitation and subject it to rigorous experimental testing. In our theoretical analysis we find that the different predictions of previous imitation models are due to different informational assumptions, not to different behavioral rules....