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Bargaining under time pressure from deadlines

Author

Listed:
  • Emin Karagözoğlu

    (Bilkent University
    CESifo Munich)

  • Martin G. Kocher

    (CESifo Munich
    Institute for Advanced Studies
    University of Vienna
    University of Gothenburg)

Abstract

We experimentally investigate the effect of time pressure from deadlines in a rich-context bargaining game with an induced reference point at the 2/3-1/3 distribution. Our results show that first proposals, concessions, and settlements are very similar for different time-pressure levels. Nevertheless, time pressure systematically influences the type of agreements reached: the likelihood of bargainers reaching agreements on the equal split is lower under time pressure. Furthermore, disagreements and last-moment-agreements (conditional on reaching an agreement) are more frequently observed under time pressure, though the effect on last-moment agreements disappears when disagreements are included in the analysis. Finally, the effect of time-pressure on the frequency of disagreements is stronger for those pairs with higher tension in first proposals.

Suggested Citation

  • Emin Karagözoğlu & Martin G. Kocher, 2019. "Bargaining under time pressure from deadlines," Experimental Economics, Springer;Economic Science Association, vol. 22(2), pages 419-440, June.
    • Handle: RePEc:kap:expeco:v:22:y:2019:i:2:d:10.1007_s10683-018-9579-y
    DOI: 10.1007/s10683-018-9579-y
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    References listed on IDEAS

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    Citations

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    Cited by:

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    2. repec:nad:wpaper:20220080 is not listed on IDEAS
    3. Grewenig, Elisabeth & Lergetporer, Philipp & Werner, Katharina & Woessmann, Ludger, 2022. "Incentives, search engines, and the elicitation of subjective beliefs: Evidence from representative online survey experiments," Journal of Econometrics, Elsevier, vol. 231(1), pages 304-326.
    4. Tarık Kara & Emin Karagözoğlu & Elif Özcan-Tok, 2021. "Bargaining, Reference Points, and Limited Influence," Dynamic Games and Applications, Springer, vol. 11(2), pages 326-362, June.
    5. Wei Zhang & Jingqi Wang & Reza Ahmadi & Sriram Dasu, 2021. "Timing the Price Agreement in High‐Tech Component Procurement," Production and Operations Management, Production and Operations Management Society, vol. 30(11), pages 4105-4120, November.
    6. Burns, Nathaniel A. & Deck, Cary A. & Thomas, Charles J., 2023. "Experimental analysis of impatience in bilateral and multilateral negotiations," Journal of Economic Psychology, Elsevier, vol. 95(C).
    7. Dilmaghani, Maryam, 2020. "Gender differences in performance under time constraint: Evidence from chess tournaments," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 89(C).
    8. Cao, Qian & Li, Jianbiao & Niu, Xiaofei, 2022. "Tempus fugit: The impact of time constraint on investor behavior," Journal of Economic Behavior & Organization, Elsevier, vol. 200(C), pages 67-81.
    9. Baranski, Andrzej & Haas, Nicholas, 2023. "The timing of communication and retaliation in bargaining: An experimental study," Journal of Economic Psychology, Elsevier, vol. 96(C).
    10. Feltovich, Nick, 2019. "Is earned bargaining power more fully exploited?," Journal of Economic Behavior & Organization, Elsevier, vol. 167(C), pages 152-180.
    11. Niu, Xiaofei & Li, Jianbiao, 2019. "How Time Constraint Affects the Disposition Effect?," EconStor Preprints 194618, ZBW - Leibniz Information Centre for Economics.
    12. Friesen, Lana & MacKenzie, Ian A. & Nguyen, Mai Phuong, 2023. "Initially contestable property rights and Coase: Evidence from the lab," Journal of Environmental Economics and Management, Elsevier, vol. 120(C).

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    More about this item

    Keywords

    Bargaining; Deadline effect; Disagreements; Reference points; Time pressure;
    All these keywords.

    JEL classification:

    • C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games
    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions

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