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During the spread of an infection, agents need to trade off the health costs of getting infected and the economic costs of taking protective actions. An agent’s health cost depends on the action of everyone in the society, leading to a game among agents with strategic substitutes. We study the...
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We consider two-person bargaining games with interdependent preferences and bilateral incomplete information. We show that in both the ultimatum game and the two-stage alternating-offers game, our equilibrium predictions are consistent with a number of robust experimental regularities that...
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