rationality, that aims to explain rejections. When fairness considerations are private information, we derive an optimal contract … and characterize conditions in which this optimal contract implies rejections. Thus, our major finding is that when …

-retailer supply chain. In each period, the manufacturer offers a wholesale price contract, and the retailer, who faces the newsvendor … contract, in which case both firms receive zero profits. The firms are represented by human subjects who interact repeatedly … throughout the experiment, capturing a long-run relationship. Our first study focuses on the power of commitment to a decision …