We analyze a bargaining protocol recently proposed in the literature vis-à-vis unconstrained negotiation. This new mechanism extracts gains from trade inherent in the differing valuation of two parties towards various issues where conflict exists. We assess the role of incomplete vs. complete...

Lecture on the first SFB/TR 15 meeting, Gummersbach, July, 18 - 20, 2004: This paper explores predictability of behavior in coordination games with multiple equilibria. In a laboratory experiment we measure subjects' certainty equivalents for three coordination games and one lottery. Attitudes...

The goal of this paper is to show how adding behavioral components to micro-foundated models of macroeconomics may contribute to a better understanding of real world phenomena. The authors introduce the reader to variations of the Keynesian Beauty Contest (Keynes, The General Theory of...

In most situations of voluntary contribution people are willing to give at the beginning, however contribution rates decay over time. In a new setup we introduce non-enforceable sharing rules, as requests, in a repeated redistribution game (called tip pooling). Three experimental treatments...

The great recession (2008) triggered an apparent discrepancy between empirical findings and macroeconomic models based on rational expectations alone. This gap led to a series of recent developments of a behavioral microfoundation of macroeconomics combined with the underlying experimental and...

Alain Ledoux, who was one of over 6,000 chess players taking part in Bühren and Frank's (2012) online Beauty Contest experiment, turned out to be the forgotten inventor of that game. We reconstruct the birth of the Beauty Contest. In section 1 of our note, its first two authors outline the...