EconPapers    
Economics at your fingertips  
 

Honesty and informal agreements

Martin Dufwenberg, Maroš Servátka () and Radovan Vadovič

Games and Economic Behavior, 2017, vol. 102, issue C, 269-285

Abstract: We develop, and 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 this informal agreement setting. For each solution there are two natural ways to do this, leaving us with 2×2 models to explore. In the experiment, a temptations-constrained version of deal-me-out emerges as the clear winner.

Keywords: Agreements; Negotiations; Communication; Temptation; Experiment; Game theory (search for similar items in EconPapers)
JEL-codes: C72 C78 C92 D03 D86 (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4) Track citations by RSS feed

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S089982561630149X
Full text for ScienceDirect subscribers only

Related works:
Working Paper: Honesty and Informal Agreements (2016) Downloads
Working Paper: Honesty and Informal Agreements (2015) Downloads
Working Paper: Honesty and Informal Agreements (2015) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:gamebe:v:102:y:2017:i:c:p:269-285

Access Statistics for this article

Games and Economic Behavior is currently edited by E. Kalai

More articles in Games and Economic Behavior from Elsevier
Bibliographic data for series maintained by Dana Niculescu ().

 
Page updated 2019-10-14
Handle: RePEc:eee:gamebe:v:102:y:2017:i:c:p:269-285