This study investigates a potential mechanism to promote coordination. With theoretical guidance using a belief-based learning model, we conduct a multi-period, binary-choice, and weakest-link laboratory coordination experiment to study the effect of gradualism - increasing the required levels...

In this paper, we study the generalized Nash bargaining solution of bilateral bargaining in any given network, which is equivalent to the bilateral balanced outcome of a cooperative game with a network structure. We first establish that it is without loss of generality to focus on any...

Psychology research on contrast effects suggests that the information from a previous decision may be compared to the information provided for the current judgement task. We document a new stylized fact that an analyst’s current earnings forecast of one firm tends to bias against her latest...