Although fairness concerns may be relevant, they appear to be too simple an explanation for why game theory's strong predictions for ultimatum games are so rarely supported. Self interested offerers want to avoid rejections; unpredicted, non-equilibrium behavior is more valuable and effective...

An incumbent employee competes against a new hire for bonus or promotion. The incumbent's ability is commonly known, while that of the new hire is private information.The incumbent is subject to a perceptional bias: His prior about the new hire's type differs from the true underlying...

An incumbent employee competes against a new hire for bonus or promotion. The incumbent's ability is commonly known, while that of the new hire is private information. The incumbent is subject to a perceptional bias: His prior about the new hire's type differs from the true underlying...