A group of rational individuals with common interest need to select one of two outcomes. The optimal decision depends on whether certain premises or pieces of evidence are established as being true, and each member receives a noisy signal of the truth value of the relevant premises. Should the...

Among the most important and robust violations of rationality are the attraction and the compromise effects. The compromise effect refers to the tendency of individuals to choose an intermediate option in a choice set, while the attraction effect refers to the tendency to choose an option that...

Most of the economic literature on bargaining has focused on situations where the set of possible outcomes is taken as given. This paper is concerned with situations where decision-makers rst need to identify the set of feasible outcomes before they bargain over which of them is selected. Our...

A key feature of arbitration is the possibility for conflicting parties to partake in the selection of the person who will rule the case. We analyze this problem of the selection of arbitrators from the perspective of implementation theory. Theoretical, empirical and experimental arguments are...

A key feature of arbitration is the possibility for conflicting parties to partake in the selection of the person who will rule the case. We analyze this problem of the selection of arbitrators from the perspective of implementation theory. Theoretical, empirical and experimental arguments are...

Implementation theory assumes that participants’ choices are rational,in the sense of being derived from the maximization of a contextindependent preference. The paper investigates implementation under complete information when the mechanism designer is aware that individuals suffer from...