Martin Dufwenberg on "Honesty & Informal Agreements"

Speaker:  Martin Dufwenberg - Bocconi University and University of Arizona
  Monday, November 17, 2014 at 12:30 PM Aula Menegazzi Palazzo Economia
We develop, and then experimentally test, models of informal agreements. Agents are assumed to be honest but suffer costs of overcoming temptations. We extend two classical bargaining solutions –-- split-the-difference and deal-me-out -- –to our setting. Our data rejects these predictions but strong patterns suggest that a modifi…ed/simpli…ed version of deal-me-out captures a lot of the action.

Programme Director
Marcella Veronesi

External reference
Marcella Veronesi

Publication date
August 23, 2014