Although fairness concerns may be relevant, they appear to be too simple an explanation for why game theory's strong predictions for ultimatum games are so rarely supported. Self interested offerers want to avoid rejections; unpredicted, non-equilibrium behavior is more valuable and effective...

This paper characterizes equilibrium outcomes of extensive form games with incomplete information in which players can sign renegotiable contracts with third-parties. Our aim is to understand the extent to which third-party contracts can be used as commitment devices when it is impossible to...