We evaluate two competing hypotheses that try to account for robust violations of the predictions of game theory in Ultimatum bargaining experiments. One popular hypothesis is that the subjects are motivated by considerations of fairness that are not modeled by traditional theory. The...

The experimental evidence against expected utility theory is, on balance, either uninformative or unconvincing. When one modifies the experiments to mitigate these criticisms the evidence tends to support traditional theory.

The authors propose a methodological extension of quantitative "cost of protection" analyses to consider elementary game-theoretic aspects of the policy process. They illustrate these ideas by evaluating size propositions: nations can "win" trade wars; multilateral negotiations that "merely...

The authors propose a method for estimating the population mean of a distribution of solution values from applied general equilibrium models subject to parameter uncertainty. The method is illustrated by demonstrating that the "marginal excess burden" of the U.S. taxation system may be robustly...

We examine the net economic benefits and government revenue implications for Chile of: (1) forming a free trade area with MERCOSUR; (2) forming a free trade area with NAFTA; and (3) reducing its external tariff multilaterally and unilaterally. We show tha