ABC on Deals
نویسندگان
چکیده
We develop, and experimentally test, a behavioral model of dealmaking which includes binding contracts and informal agreements as distinct but related special cases. The key assumptions: people are mostly honest; they suffer costs of overcoming temptation to renege; and they tend to split gains down the middle. ∗MD: University of Arizona, University of Gothenburg, and the CESifo Network; [email protected]. MS: NZEEL, University of Canterbury; [email protected]. RV: University of Texas at Dallas; [email protected]. We thank Jim Andreoni, Rachel Croson, Nick Feltovich, Uri Gneezy, Joel Sobel, Johan Stennek, Fernando Vega-Redondo, and several participants in seminars for helpful comments and discussion. For financial support, MD thanks the NSF and RV thanks the Asociación Méxicana de Cultura.
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