Honesty and informal agreements

Martin Dufwenberg, Maroš Servátka, Radovan Vadovič*

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

12 Citations (Scopus)


We develop, and experimentally test, models of informal agreements. Agents are assumed to be honest but suffer costs of overcoming temptations. We extend two classical bargaining solutions – split-the-difference and deal-me-out – to this informal agreement setting. For each solution there are two natural ways to do this, leaving us with 2×2 models to explore. In the experiment, a temptations-constrained version of deal-me-out emerges as the clear winner.

Original languageEnglish
Pages (from-to)269-285
Number of pages17
JournalGames and Economic Behavior
Publication statusPublished - 1 Mar 2017


  • Agreements
  • Communication
  • Experiment
  • Game theory
  • Negotiations
  • Temptation


Dive into the research topics of 'Honesty and informal agreements'. Together they form a unique fingerprint.

Cite this