In procurement auctions, bidders are usually better informed about technical, financial, or legal aspects of the goods and services procured. Therefore, the buyer may include a dialogue in the procurement procedure which enables the suppliers to reveal information that will help the buyer to...

Two players with preferences distorted by the focusing effect (Koszegi and Szeidl, 2013) negotiate an agreement over several issues and one transfer. We show that, as long as their preferences are differentially distorted, an issue will be inefficiently left out of the agreement or inefficiently...

The present study analyzes consumption practices of feminist mothers and how they negotiate tensions arising from the clash of their multiple identities and marketplace behaviors. Having a broad research focus, this study aims to contribute to the epistemic terrain of motherhood and consumption...

Im zweiten Jahr seit Beginn der Pandemie hat COVID-19 die internationale Diplomatie grundlegend verändert. Die Verhandlungen gehen weiter, finden aber zunehmend online statt, in Videokonferenzen, Chats und Breakout-Sessions. Das verändert die zeitlichen und räumlichen Dimensionen...

One of the most significant stylized facts in the U.S. economy since the 1970s has been the decline in the share of national income accruing to labor. Many recent studies have sought to explain this trend, with most explanations focusing on structural changes such as deindustrialization,...

Sovereign debt crises are difficult to solve. This paper studies the "holdout problem", meaning the risk that creditors refuse to participate in a debt restructuring. We document a large variation in holdout rates, based on a comprehensive new dataset of 23 bond restructurings with external...

In this paper we examine the effects of limited liability on mortgage dynamics. While the literature has focused on default rates, renegotiation, or loan rates individually, we study them together as equilibrium outcomes of the strategic interaction between lenders and borrowers. We present a...

Weitzman (2014) proposed that focusing international climate negotiations on a uniform carbon price is more effective than Paris style negotiations in achieving ambitious climate action. We put this hypothesis to an experimental test by simulating international negotiations on climate change in...

International cooperation on the reduction of greenhouse gas emissions, disarmament, or free trade needs to be negotiated. The success of such negotiations depends on how they are designed. In the context of international climate change policy, it has been proposed [e.g., Weitzman J of the...

Two players with preferences distorted by the focusing effect (Koszegi and Szeidl, 2013) negotiate an agreement over several issues and one transfer. We show that, as long as their preferences are differentially distorted, an issue will be inefficiently left out of the agreement or inefficiently...

This study focuses on the intersection of power and gender in negotiations, which is seldom challenged in previous research. In an experiment with 72 negotiators, we consider issue authority as a proxy of power in negotiations and investigate how different power allocations affect the...

Gift-giving customs are ubiquitous in social, political, and business life. Legal regulation and industry guidelines for gifts are often based on the assumption that large gifts potentially influence behavior and create conflicts of interest, but small gifts do not. However, scientific evidence...

In this paper we provide some evidence of the common claim that STCs improve transparency and monitoring as well as help mitigate trade conflicts. We analyse the content of 555 STCs raised in the TBT committee in the period 1995-2018. We find that: (i) STCs are used to acquire new and higher...

In procurement auctions, bidders are usually better informed about technical, financial, or legal aspects of the goods and services procured. Therefore, the buyer may include a dialogue in the procurement procedure which enables the suppliers to reveal information that will help the buyer to...

This paper explores the kinds of demands governments in Least Developed Countries (LDCs) could and should be formulating and submitting in the context of the e-commerce negotiations at the World Trade Organisation (WTO) as well as any current or proposed Free Trade Agreements (FTAs) they are...

How do countries settle disputes in the shadow of the law? Even in the presence of legalized dispute settlement, countries still rely on diplomatic channels to resolve conflicts. But it can be difficult to assess diplomacy's impact on dispute resolution, because those channels tend to be opaque....

When firms post prices to sell their products in a competitive market, buyers often seek to bargain down the prices. The existing studies on dynamic competition, however, focus on firms' dynamic pricing strategies without considering the possibility of bargaining. We model a random stream of...

Problem definition: Project outsourcing has been a pronounced trend in many industries but is also recognized as a major cause for project delays. We study how companies can coordinate outsourced projects with uncertain completion times through bilateral contract negotiations.Academic/practical...

Negotiations regularly take place on the business-to-business side of two-sided markets. However, little is known about the consequences of these negotiations on a platform's design, pricing, participation, and welfare. In this paper, we propose a model where platforms choose between the...

We introduce business-to-business (B2B) relationships into an otherwise standard model to revisit two aspects of price dynamics in a unified analysis. On one side, the pass-through of cost shocks to prices is empirically incomplete. On the other side, the literature contains conjectures that...

This paper provides novel insights about competition among bidders during the whole takeover process, its effect on offered deal premiums, bidder announcement returns, and post-bid dynamics. Exploiting a representative sample of 780 public U.S. transactions, extended with comprehensive...

The paper initially explains some fundamentals of interactive decision-making (“game theory”) and then applies different approaches of game theory to different aspects of Brexit. The first analysis perceives the 2016 referendum as a “simple voting game” and challenges the view that the...

This paper explores the kinds of demands governments in Least Developed Countries (LDCs) could and should be formulating and submitting in the context of the e-commerce negotiations at the World Trade Organisation (WTO) as well as any current or proposed Free Trade Agreements (FTAs) they are...

International carbon markets are frequently propagated as an efficient instrument for reducing CO2 emissions. We argue that such markets, despite their desirable efficiency properties, might not be in the best interest of governments who are guided by strategic considerations in negotiations. We...

This paper analyzes how injunctions relate to patent hold-up problems. To this end, we present a simple model of licensing negotiations between a patent holder and a downstream firm in the shadow of litigation. More specifically, we consider the situation in which an injunction is granted as a...

International carbon markets are frequently propagated as an efficient instrument for reducing CO2 emissions. We argue that such markets, despite their desirable efficiency properties, might not be in the best interest of governments who are guided by strategic considerations in negotiations. We...

To foster positive relationships with clients, audit firms often assign non-decision-making liaisons to engagements (i.e., “relationship partners,” hereafter RPs). Yet, little is known about RPs' influence on disagreements that arise during fieldwork. We conduct an experiment with financial...

Bargaining and mortgage financing have been extensively studied in the literature. However, they have only been studied separately. This paper is the first to embed financing into a bargaining model, and our model yields several new insights. First, we show that financing creates new ground for...