UNDERSTANDING WHEN AGENTS ARE FAIRMEN OR GAMESMEN

Experiments designed to test the predictions of noncooperative game th eory about the way that surplus will be divided in alternating offer g ames with discounting have produced conflicting results. Neither the S tahl/Rubinstein division nor the alternative equal division are genera lly supported. The experiments reported here suggest a regularity in t he data that is consistent with all the previous experiments: First pl ayers who have a great advantage in the sense that the Stahl/Rubinstei n division would give them a large share of the initial pie demand mor e than half of the pie, but do not fully exploit their advantage. Firs t players who are at a disadvantage demand equal divisions. Journal of Economic Literature Classification Numbers: C72, C91. (C) 1994 Academ ic Press, Inc.