Field evidence suggests that arbitration increases negotiation dispute rates. We study repeated bargaining in a laboratory to understand the reasons why. Our results represent a reinterpretation of an explanation known as the narcotic effect. The standard interpretation assumes that the...

We consider bargaining in a bipartite network of buyers and sellers, who can only trade with the limited number of people with whom they are connected. Such networks could arise due to proximity issues or restricted communication flows, as with information transmission of job openings, business...

We examine learning behavior in auctions and Fair division games with independent private values under two different price rules, first and second price. Participants face these four games repeatedly and submit complete bid functions rather than single bids. This allows us to examine whether...

We study the role of norm violations and learning behavior in multi- and single-worker gift-exchange games and find that working with co-workers leads to a twofold effect. First, flexible wages yield moderately higher efforts than in the single-employee treatment. The data suggests that this is...

The purpose of this paper is to identify learning in games in experimental economic settings, and apply their results to real multilateral trade negotiations, such as the Doha Development Agenda (DDA) in the World Trade Organizations (WTO). This paper argues that the structure of games including...

The purpose of this paper is to identify learning in games in experimental economic settings, and apply their results to real multilateral trade negotiations, such as the Doha Development Agenda (DDA) in the World Trade Organizations (WTO). This paper argues that the structure of games including...