Ad-hoc contracting allows to quickly react to changes which could be neglected or noticed too late in case of constant contracting. But always deciding anew, e.g., how much and what to order in commercial and what to buy in private life, is too cumbersome. To capture the cognitive burden of...

We modify the Acquiring-a-Company game to study lying in ultimatum bargaining. Privately informed sellers send messages about the alleged value of their company to potential buyers. Via random information leaks, buyers can learn the true value before proposing a price which the seller finally...