In experimental bargaining with incomplete information, we vary the information distribution (symmetric and asymmetric), the direction of electronic prepaycommunication (no, one-way, and two way), and the electronic communication medium (email and video) Bargainig outcomes are influenced by the...

One of the long-standing puzzles in economics is why wages do not fall sufficiently in recessions so as to avoid increases in unemployment. Put differently, if the competitive market wage declines, why don’t employers simply force their employees to accept lower wages as well? As an...

This paper reports results from a laboratory experiment studying the role of asymmetries, both in payoffs and recognition probabilities, in a model of strategic bargaining with Condorcet cycles. Overall, we find only limited support for the equilibrium predictions. The main deviations from...

We report an experiment on the Probabilistic Serial (PS) mechanism for allocating indivisible goods. The PS mechanism, a recently discovered alternative to the widely used Random Serial Dictatorship mechanism, has attractive fairness and efficiency properties if people report their preferences...

This paper forwards a new way of accounting for the experimental evidence related to the Ultimatum Game. We argue that players in this game have reasons to be both fair and self-interested, but the balance between these two considerations cannot be expressed in terms of a tradeoff. We test our...

We report an experiment that uses the strategy method (Selten 1967) to elicit subjects' general strategy for playing any 2-person 3x3-game with integer payoffs between 0 and 99. Each two subjects' strategies play 500000 games in each of the 5 tournaments. For games with pure strategy equilibria...

In fractional ownership markets, consumers purchase a share in a property and can later exchange it with other owners through a secondary market. Forward-looking consumers may purchase low quality shares at a low price with the intention of trading up. This poses a serious problem. We show that...

Rawls (1958) suggested that it is possible to arrive at a fair allocation in a 2-player Nash demand game by granting equal gains to both players. Rawls theorized that players themselves would select this allocation if they bargain from the 'original position'. Harsanyi (1958) suggested the...

Many institutions use matching algorithms to allocate resources to individuals. Examples include the assignment of doctors, students and military cadets to hospitals, schools and branches, respectively. Oftentimes, agents' ordinal preferences are highly correlated, motivating the use of...

We experimentally study how redistribution choices are affected by positive and negative information regarding the behaviour of a previous participant in a dictator game with a taking option. We use the strategy method to identify behavioural ‘types', and thus distinguish ‘conformists' from...