We study an original equipment manufacturer (OEM) purchasing two inputs for assembly from two suppliers with private cost information. The OEM can contract with the two suppliers either simultaneously or sequentially. We consider both cases in which the OEM has relatively equal bargaining power...

We study equity division between an entrepreneur and one or more potential investors. The investor(s) and the entrepreneur negotiate how much equity (ownership) in the startup the investor(s) should receive in exchange for their investment. The value of that equity is uncertain at the time of...

Motivated by payment terms observed in regulatory reporting data, we construct a signalling model to analyse how late payments affect market entry and price competition in business-to-business transactions. Buyers first signal a payment term to potential suppliers, either standard or extended....

We experimentally study a situation in which two players negotiate the dissolution of a partnership. In our experiments, the valuation from owning the partnership is risky and subjects must simultaneously negotiate both a selling price and the identity of the buyer. That is, upon reaching an...

We study the coordination problem of a two-firm supply chain in which firms simultaneously choose a capacity before demand is realized. We focus on the role that (a lack of) common knowledge of demand forecasts has on firms' ability to align their capacity decisions. When forecasts are not...

We study the role that the option to terminate a relationship has on cooperation in a repeated prisoner's dilemma. While cooperation is, in theory, sustainable with or without this option, we show experimentally that cooperation rates are significantly lower with the option to terminate. Rather...