This paper uses detailed data on sequential offers from seven vastly different real-world bargaining settings to document a robust pattern: agents favor offers that split the difference between the two most recent offers on the table. Our settings include negotiations for used cars, insurance...

This paper shows that product design shapes search frictions and that intermediaries leverage this channel to increase their rents in the context of the U.S. municipal bond market. The majority of bonds are designed via negotiations between a local government and its underwriter. They are then...

We propose and estimate a model to quantify the direct and indirect effects of income tax on marital status, fertility and labor force participation. We show identification of the model and estimate it using the NLSY/79 data. We simulate different tax regimes.