This paper presents experimental results from an analysis of two similar games, the repeated ultimatum game and the repeated best-shot game. The experiment examines whether the amount and content of information given to players affects the evolution of play in the two games. In one experimental...

A well-known implication of microeconomic theory is that sunk costs should have no effect on decision making. We test this hypothesis with a human-subjects experiment. Students recruited from graduate business courses, with an average of over six years of work experience, played the role of...

Game theorists typically assume that changing a game's payoff levels - by adding the same constant to, or subtracting it from, all payoffs - should not affect behavior. While this invariance is an implication of the theory when payoffs mirror expected utilities, it is an empirical question when...

How do individuals achieve "good outcomes" in one-shot strategic situations? One possibility is that they engage in some kind of preplay communication - cheap talk - in which they endeavor to convince one another of the actions they intend to play. Another, less explored, possibility is that...

After an overview of theory for organizations based on data derived from individual members, we review the problem created by this traditional "methodological individualism" perspective and offer an alternative theory based on the mathematical physics of interdependent uncertainty for both...

In signalling environments ranging from consumption to education, high-quality senders often shun the standard signals that should separate them from lower-quality senders. We find that allowing for additional, noisy information on sender quality permits equilibria where medium types signal to...

In signaling environments ranging from consumption to education, high quality senders often shun the standard signals that should separate them from lower quality senders. We find that allowing for additional, noisy information on sender quality permits equilibria where medium types signal to...

In signaling environments ranging from consumption to education, high quality senders often shun the standard signals that should separate them from lower quality senders. We find that allowing for additional, noisy information on sender quality permits equilibria where medium types signal to...