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Bargaining Over Losses

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  • JAYSON L. LUSK

    ()
    (Department of Agricultural Economics, Oklahoma State University, 411 Ag Hall Stillwater, OK 74078, USA)

  • M. DARREN HUDSON

    ()
    (Department of Agricultural and Applied Economics, Texas Tech University, MS 42132 Lubbock, TX 79409-2132, USA)

Abstract

We introduce a modified version of the Ultimatum game where people bargain over losses instead of gains. Results show that when people bargain over losses, they make more aggressive offers, in terms of their own monetary well-being, as compared to when they bargained over gains.

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Bibliographic Info

Article provided by World Scientific Publishing Co. Pte. Ltd. in its journal International Game Theory Review.

Volume (Year): 12 (2010)
Issue (Month): 01 ()
Pages: 83-91

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Handle: RePEc:wsi:igtrxx:v:12:y:2010:i:01:p:83-91

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Related research

Keywords: Bargaining; loss aversion; negative ultimatum bargaining game; Subject Classification: 91A90; Subject Classification: 91B99; Subject Classification: 91C99; Subject Classification: 91A05; Subject Classification: 91A10;

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Cited by:
  1. Vjollca Sadiraj & Juan Sun, 2012. "Efficiency in Bargaining Games with Alternating Offers," Economics Bulletin, AccessEcon, vol. 32(3), pages 2366-2374.

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