A model of coalition government formation is presented in which inefficient, non-minimal winning coalitions may form in Nash equilibrium. Predictions for five games are presented and tested experimentally. The experimental data support potential maximization as a refinement of Nash equilibrium....

We report results from a simultaneous bilateral bargaining experiment with attention to the effects of a settlement bonus on strategic decision-making behavior. In instances with a sufficiently large settlement bonus, truthful revelation emerges as the dominant strategy. However previous work...

Diverging from the historical precedent of using a midpoint rule (k=½) to experimentally structure two-person bargaining under incomplete information, extreme values of k (k={0, 1}) are invoked in an asymmetric information environment endowing one player with exclusive price-setting power and...