One robust result in experimental economics is the failure to observe equilibrium play in the ultimatum game. A heretofore unnoticed feature of the game is that neither player voluntarily chooses to play the game. Motivated by Adam Smith's proposition that beneficence — like that of...

Market power arises in many posted-offer markets and drives a distinction between the competitive prediction and the Nash equilibrium for the market viewed as a stage game. Pricing patterns in such markets tend to be characterized by Edgeworth cycles that deteriorate as the sessions progress....