Detecting Failures of Backward Induction: Monitoring Information Search in Sequential Bargaining

1 The financial support of NSF 88-09299 and NSF 90-23531 to the first two authors is gratefully acknowledged. We also thank Rachel Croson, Brian Becker, Barry Blecherman, Gerard Cachon, David Goldstein, Teck-Hua Ho, Keith Weigelt, Ben Wilner, and many colleagues at Penn for their work and ideas. We also have received helpful comments from several referees and seminar participants at many universities including Harvard, Cornell, New York University, Penn State, Rochester, Toronto, Minnesota, MIT, and the International Conference on Game Theory (Florence) and BoWo IV (Bonn). Eric J. Johnson