We consider a situation in which games are formed endogenously in two senses: (1) there is a pregame in which agents choose to learn a subset of all feasible strategies and can then employ only these strategies in subsequent play, and (2) agents choose their game partners through a costly search...

Recent experimental evidence from dictator games suggests that proposers take money from receivers when taking is an option, and that many proposers are reluctant to play the game. This paper proposes a behavioral model with two components: a choice correspondence that depends on the endowed...