IN his classic novel, "Catch-22" (1961), Joseph Heller describes a thoroughly frustrating situation faced by a combat pilot in World War II. This is generalized to a "generic" 2x2 strict ordinal game, in which whatever strategy the column player chooses, the best response of the row player is to...

Most authors have attributed the real effects of money in the short run either to mistaken expectations or to non-market clearing or both. In this paper we argue that neither of these channels is needed to explain the facts. We show that a competitive market clearing model in which money enters...

We consider two person bargaining games with independent preferences, with and without bilateral incomplete information. We show that, both in the ultimatum game and in the two-stage alternating-offers game, our equilibrium predictions are fully consistent with all robust experimental...