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Reasons for Conflict: Lessons from Bargaining Experiments

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  • Armin Falk
  • Ernst Fehr
  • Urs Fischbacher

Abstract

In this paper we experimentally study the effects of fairness, spite, and reputation formation on conflict. We show that fairness preferences are a potential source of conflict and that intentions play an important role in the perception of fairness. Further, we show that feelings of spite may affect the occurrence of conflict. Finally, we study reputation formation as a possible source of conflict. We show that people invest in a reputation of being a tough bargainer. This does not automatically increase conflict, however. The reason is that through reputation, information about one's opponent is much better than in anonymous bargaining.

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Bibliographic Info

Article provided by Mohr Siebeck, Tübingen in its journal Journal of Institutional and Theoretical Economics.

Volume (Year): 159 (2003)
Issue (Month): 1 (March)
Pages: 171-

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Handle: RePEc:mhr:jinste:urn:sici:0932-4569(200303)159:1_171:rfclfb_2.0.tx_2-d

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Cited by:
  1. Sumon Kumar Bhaumik & Ira N. Gang & Myeong-Su Yun, 2007. "Rationality as a Barrier to Peace: Micro-evidence from Kosovo," HiCN Working Papers 31, Households in Conflict Network.
  2. Israel Waichman & Artem Korzhenevych & Till Requate, 2010. "Equal Split in the Informal Market for Group Train Travel," Kiel Working Papers 1638, Kiel Institute for the World Economy.
  3. Cox, Caleb A., 2013. "Inequity aversion and advantage seeking with asymmetric competition," Journal of Economic Behavior & Organization, Elsevier, vol. 86(C), pages 121-136.
  4. Wolfgang Buchholz & Wolfgang Peters, 2005. "A Rawlsian Approach to International Cooperation," Kyklos, Wiley Blackwell, vol. 58(1), pages 25-44, 02.
  5. Gulyás, Attila, 2007. "A méltányosságelmélet alapjai. Modellek és nézőpontok
    [The foundations of quity theory. Models and viewpoints]
    ," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(2), pages 167-183.
  6. Charness, Gary & Kuhn, Peter, 2011. "Lab Labor: What Can Labor Economists Learn from the Lab?," Handbook of Labor Economics, Elsevier.

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