This chapter surveys literature on experimental law and economics. Long the domain of legally minded psychologists and criminologists, experimental methods are gaining significant popularity among economists interested in exploring positive and normative aspects of law. Because this literature...

A buyer wishes to purchase a good from a seller who chooses a sequence of prices over time. In each period, the buyer can also exercise an outside option such as moving onto another seller. We show there is a unique equilibrium in which the seller charges a constant price in every period equal...