Most of the economic literature on bargaining has focused on situations where the set of possible outcomes is taken as given. This paper is concerned with situations where decision-makers first need to identify the set of feasible outcomes before they bargain over which of them is selected. Our...

Among the most important and robust violations of rationality are the attraction and the compromise effects. The compromise effect refers to the tendency of individuals to choose an intermediate option in a choice set, while the attraction effect refers to the tendency to choose an option that...

Each period, a principal must assign one of two agents to a new task. Each agent privately learns whether he is qualified for the task. An agent wishes to be chosen independently of qualification and chooses whether to apply for the task. The principal wishes to appoint the most qualified agent...