We present an experimental study to learn about behavior in bargaining situations under large risks. In order to implement realistic risks involved in the field, we calibrate the experimental parameters from an environment involving substantial variation in profits, the motion picture industry....

We use a household bargaining model to provide a rationale for gender discrimination in pay to disappear. In societies where women have a credible outside option to marriage and have the right to bargain with their future husband over the benefits of their union, the elimination of gender...