In Conflict Resolution situations where two parties with opposed preferences need to make a number of decisions simultaneously,we propose a simple mechanism that endows agents with a certain number of votes that can be distributed freely across issues. Its novelty, and appeal, is that it allows...

In Conflict Resolution situations where two parties with opposed preferences need to make a number of decisions simultaneously, we propose a simple mechanism that endows agents with a certain number of votes that can be distributed freely across issues. This mechanism allows parties to trade off...

Legislators trade influence to attain approval of their most preferred bills. The classical example is found in pork barrel politics with concentrated benefits and diffuse costs where logrolling agreements involving two (or more) legislators can load costs onto legislators excluded from the...

Following Pillar 3 of the new Basel Capital Adequacy Proposals (Basel II), we analyse the effects of disclosure in the banking sector in a stylised setting of delegated portfolio management. We first consider the interaction between the shareholder and the manager of a bank - the manager has to...

We present an experiment in which extrinsic information (signals) may generate sunspot equilibria. The underlying coordination game has a unique symmetric non-sunspot equilibrium, which is also risk-dominant. Other equilibria can be ordered according to risk dominance. We compare treatments with...

A well-known theoretical result in the contest literature is that greater heterogeneity decreases performance of contestants because of the “discouragement effect.” Leveling the playing field by favoring weaker contestants through bid-caps and favorable tie-breaking rules can reduce the...

In Conflict Resolution situations where two parties with opposed preferences need to make a number of decisions simultaneously, we propose a simple mechanism that endows agents with a certain number of votes that can be distributed freely across issues. This mechanism allows parties to trade off...

Experimental evidence suggests that agents in social dilemmas have belief-dependent, other-regarding preferences. But in experimental games such preferences cannot be common knowledge, because subjects play with anonymous co-players. We address this issue theoretically and experimentally in the...