Humans often lie strategically. We study this problem in an ultimatum game involving informed proposers and uninformed responders, where the former can send an unverifiable statement about their endowment. If there are some intrinsically honest proposers, a simple message game shows that the...

This paper reports the results from a two-person "pledge and give" experiment. Each person's endowment is private information available only to him. In the first stage, each agent informs the other about the amount he intends to give, or makes a pledge. In the second stage, each agent makes a...

This paper brings experimental evidence on investors' behavior subject to an "illiquidity" constraint, where the success of a risky project depends on the participation of a minimum number of investors. The experiment is set up as a frameless coordination game that replicates the investment...