This paper compares the choice of focal points in a Nash Demand Game embedded in an abstract frame with the corresponding choices in a game with a real product frame where parties bargain for a well-known consumer product. We find that the frame has a substantial impact on the fraction of...

We study risk taking on behalf of others in an experiment on a large random sample. The decision makers in our experiment are facing high-powered incentives to increase the risk on behalf of others through hedged compensation contracts or with tournament incentives. Compared to a baseline...

Beliefs in signals that reveal lies and truths are widespread. It is shown that such beliefs may be exploited strategically in signaling games of pure conflict of interest. Truth and lie detection is modeled by signals perceived by the receiver that are emitted with a probability contingent on...