- Bocconi University and University of Arizona
Monday, November 17, 2014
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
- Publication date
August 23, 2014