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Negotiating a Coalition

Author

Listed:
  • William P. Bottom
  • James Holloway

    (John M. Olin School of Business, Washington University)

  • Scott McClurg
  • Gary J. Miller

    (Department of Political Science, Washington University)

Abstract

The authors examine how negotiators' risk preferences influence the formation of coalitions. Joining a coalition may either increase or mitigate risk depending on the nature of the bargaining problem. In an experimental setting, the authors test whether relative risk preferences influence the likelihood of joining a coalition and the distribution of payoffs in coalitions that form. With inexperienced bargainers, risk preferences predict coalition composition but not payoff distribution. This may reflect the fairly egalitarian agreements reached by these coalitions. With experienced bargainers, risk preferences are unrelated to coalition membership but do predict the distribution of payoffs. Risk preferences influence the course of negotiation in a different manner as parties learn to use both their alternatives and their risk preferences as sources of bargaining power.

Suggested Citation

  • William P. Bottom & James Holloway & Scott McClurg & Gary J. Miller, 2000. "Negotiating a Coalition," Journal of Conflict Resolution, Peace Science Society (International), vol. 44(2), pages 147-169, April.
    • Handle: RePEc:sae:jocore:v:44:y:2000:i:2:p:147-169
    DOI: 10.1177/0022002700044002001
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    References listed on IDEAS

    as
    1. Riker, William H. & Zavoina, William James, 1970. "Rational Behavior in Politics: Evidence from a Three Person Game," American Political Science Review, Cambridge University Press, vol. 64(1), pages 48-60, March.
    2. Bottom, William P., 1998. "Negotiator Risk: Sources of Uncertainty and the Impact of Reference Points on Negotiated Agreements," Organizational Behavior and Human Decision Processes, Elsevier, vol. 76(2), pages 89-112, November.
    3. Martin J. Osborne & Ariel Rubinstein, 1994. "A Course in Game Theory," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262650401, December.
    4. Hammond, Thomas H. & Miller, Gary J., 1987. "The Core of the Constitution," American Political Science Review, Cambridge University Press, vol. 81(4), pages 1155-1174, December.
    5. Bottom, William P. & Studt, Amy, 1993. "Framing Effects and the Distributive Aspect of Integrative Bargaining," Organizational Behavior and Human Decision Processes, Elsevier, vol. 56(3), pages 459-474, December.
    6. Murnighan, J Keith & Roth, Alvin E & Schoumaker, Francoise, 1988. "Risk Aversion in Bargaining: An Experimental Study," Journal of Risk and Uncertainty, Springer, vol. 1(1), pages 101-124, March.
    7. Gerard Debreu, 1963. "On a Theorem of Scarf," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 30(3), pages 177-180.
    8. Riker, William H., 1967. "Bargaining in a Three-Person Game," American Political Science Review, Cambridge University Press, vol. 61(3), pages 642-656, September.
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