We report results from a simultaneous bilateral bargaining experiment with attention to the effects of a settlement bonus on strategic decision-making behavior. In instances with a sufficiently large settlement bonus, truthful revelation emerges as the dominant strategy. However previous work...

The Adjusted Winner mechanism for two-player bargaining has been theoretically shown to produce fair (efficient and envy-free) outcomes (Brams and Taylor 1996). We study this claim experimentally in a bilateral bargaining game of incomplete information for two divisible goods using three...

We extend the sealed-bid k-double-auction mechanism from a single- to two-round game where offers are made simultaneously during each round. If an agreement is reached on round 1, then the traders realize their profit and the game is over. If not, equipped with information about the round 1 bids...

The sealed-bid k-double auction mechanism for two-person bargaining under incomplete information can be extended by providing a bonus for both traders if, and only if, an agreement is reached. Brams and Kilgour (1996) proved that there is a unique level of bonus, namely, half the difference...