We report the results of an experimental investigation of the Baron and Ferejohn (1989) model of legislative bargaining with cheap talk. Communication results in substantially increased proposer power, close to the stationary subgame perfect equilibrium prediction. This is achieved primarily...

Outcomes under the Baron-Ferejohn (1989) model are investigated when proposers distribute benefits versus imposing costs under an experimental design where predicted outcomes are theoretically isomorphic, absent reference dependent preferences. Initial experimental sessions showed greater...

Recent interest in reducing budget deficits raises questions regarding the impact on legislative bargaining of cuts versus increases in government spending. Using an experimental design where the outcomes are theoretically isomorphic results in significant differences in bargaining outcomes:...