Markets versus negotiations: An experimental investigation

* We are grateful for the suggestions made by Gary Bornstein, Itzhak Gilboa, Daniele Paserman, Marc Rysman, and seminar audiences at the Hebrew University, and at the ESA Meeting in Strasbourg. An associate editor and two anonymous referees provided useful comments. Financial support from the Aims Byudks foundation is gratefully acknowledged. † Corresponding author. Department of Management and Policy, University of Arizona. Tucson, AZ 85721. Email [email protected]; Phone (520) 626-7788; Fax (520) 6214171. ‡ Department of Economics, Boston University, and The Center for Rationality and Department of Economics, The Hebrew University of Jerusalem. Email [email protected], URL http://people.bu.edu/zvika/.