Principal-agent models in which the agent has access to private information before a contract is signed are a … explained by social preferences. Investigating settings with both exogenous and endogenous information structures, we find that …

The game-theoretic bargaining literature insists on non-cooperative bargaining procedure but allows 'cooperative …' implementation of agreements. The effect of this is to allow free-reign of bargaining power with no check upon it. In reality, courts … bargaining model which incorporates the idea that agreements may be enforced non-cooperatively. We show that this has a …

report about an experiment with 508 participants designed to test whether this fundamental trade-off is actually relevant. In … particular, we investigate settings with both exogenous and endogenous information structures. We find that theory is indeed a … useful predictor for the relative magnitudes of the principals' offers, the agents' information gathering decisions, and the …