A substantial literature has examined negotiation problems. Throughout this literature, scholars have assumed that participants approach negotiations with the intent of reaching a deal and that negotiation participants cannot be significantly harmed by the negotiation process. In this paper, we...

This paper explores the interdependence between market structure and an important class of extra-rational cognitive biases. Starting with a familiar bilateral monopoly framework, we characterize the endogenous emergence of preference distortions during bargaining which cause negotiators to...