We consider a revenue maximizing seller who, before proposing a mechanism to sell her object(s), observes a vector of signals correlated with buyers’ valuations. Each buyer knows only the signal that the seller observes about him but not the signals she observes about other buyers. The seller therefore has information about buyers’ valuations that is not common knowledge. How will the seller di...

Abstract Buyers often price a product lower than sellers do, pricing discrepancy known as the endowment effect. We investigated way buyers and change their decisions function of social distance when making on behalf another person. In Study 1, persisted decision for close contact whereas pattern was reversed distant contact. 2 replicated this using proximity manipulation, effect mediated by par...

We examine a simple bargaining setting, where heterogeneous buyers and sellers are repeatedly matched with each other. We begin by characterizing e ciency in such a dynamic setting, and discuss how it di ers from e ciency in a centralized static setting. We then study the allocations which can result in equilibrium when the matched buyers and sellers bargain through some extensive game form. We...

We study a dynamic setting in which stochastic information about the value of a privately-informed seller’s asset is gradually revealed to a market of buyers. We characterize the unique equilibrium in a continuous-time framework. The equilibrium involves periods of no trade or market failure. The no-trade period ends in one of two ways: either enough good news arrives restoring confidence and m...

Economic bubbles are an empirical puzzle because they do not readily fit the notion of an efficient market. We argue that bubbles are associated with a conflict and a gap in the allocation of effort during negotiation by sellers and buyers. We examined 21 experimental asset markets where in one condition players could buy and sell and in the other they could either buy or sell. The results indi...

When faced with a new challenge, we often reflect on related past experiences to guide our behavior. The ability to retrieve memories that overlap with current experience, a process known as pattern completion, is theorized as a critical function of the hippocampus. Although this view has influenced research for decades, there is little empirical support for hippocampal pattern completion to in...