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An Experimental Analysis of Strikes in Bargaining Games with One-Sided Private Information

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  • Forsythe, Robert
  • Kennan, John
  • Sopher, Barry

Abstract

The authors study two-player, pie-splitting games in which one player knows the pie and the other knows only its probability distribution. The authors compare treatments in which incentive-efficient strikes (disagreements) are possible with alternatives in which efficiency forbids strikes. They find that incentive-efficiency is very helpful in explaining when strikes occur. There is also evidence of substantial heterogeneity in the subjects' altruism and in their risk preferences. This means that the common-knowledge assumptions of game theory cannot be controlled in experiments; but in the authors' experiments the main theoretical conclusions seem robust to violations of these assumptions. Copyright 1991 by American Economic Association.

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Bibliographic Info

Article provided by American Economic Association in its journal American Economic Review.

Volume (Year): 81 (1991)
Issue (Month): 1 (March)
Pages: 253-78

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Handle: RePEc:aea:aecrev:v:81:y:1991:i:1:p:253-78

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Cited by:
  1. Aleksander Berentsen & Michael McBride & Guillaume Rocheteau, 2013. "Limelight on dark markets: an experimental study of liquidity and information," ECON - Working Papers 126, Department of Economics - University of Zurich.
  2. Hoppe, Eva I. & Schmitz, Patrick W., 2009. "Gathering Information before Signing a Contract: Experimental Evidence," CEPR Discussion Papers 7252, C.E.P.R. Discussion Papers.
  3. Hoppe, Eva I. & Schmitz, Patrick W., 2013. "Contracting under Incomplete Information and Social Preferences: An Experimental Study," MPRA Paper 44240, University Library of Munich, Germany.
  4. Adrian Groot Ruiz & Theo Offerman & Sander Onderstal, 2014. "For those about to talk we salute you: an experimental study of credible deviations and ACDC," Experimental Economics, Springer, vol. 17(2), pages 173-199, June.
  5. Charness, Gary & Kuhn, Peter, 2011. "Lab Labor: What Can Labor Economists Learn from the Lab?," Handbook of Labor Economics, Elsevier.
  6. Iris Bohnet & Richard Zeckhauser, 2004. "Social Comparisons in Ultimatum Bargaining," Scandinavian Journal of Economics, Wiley Blackwell, vol. 106(3), pages 495-510, October.
  7. Gary Charness & Margarida Corominas, 2000. "Bargaining on networks: An experiment," Economics Working Papers 492, Department of Economics and Business, Universitat Pompeu Fabra.
  8. Rami Zwick & Ching Chyi Lee, 1999. "Bargaining and Search: An Experimental Study," Experimental 9902003, EconWPA.
  9. Anbarci, Nejat & Feltovich, Nick, 2012. "Bargaining with random implementation: An experimental study," Games and Economic Behavior, Elsevier, vol. 76(2), pages 495-514.
  10. Libman, Alexander, 2011. "Words or deeds – what matters? Experience of recentralization in Russian security agencies," MPRA Paper 29197, University Library of Munich, Germany.
  11. Fabienne Tournadre & Marie-Claire Villeval, 2001. "Learning from Strike," CIRANO Working Papers 2001s-67, CIRANO.
  12. Adrian de Groot Ruiz & Theo Offerman & Sander Onderstal, 2011. "An Experimental Study of Credible Deviations and ACDC," Tinbergen Institute Discussion Papers 11-153/1, Tinbergen Institute.
  13. Battaglini, Marco & Makarov, Uliana, 2014. "Cheap talk with multiple audiences: An experimental analysis," Games and Economic Behavior, Elsevier, vol. 83(C), pages 147-164.

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