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Learning from Strike

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Author Info
Fabienne Tournadre
Marie-Claire Villeval

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Abstract

This paper reports on an experimental study of the influence of asymmetric information and information spillovers on bargaining outcomes. It develops and tests Kuhn and Gu (1999) s model of learning in sequential wage negotiations, by means of two Ultimatum Bargaining Games with uncertainty on the proposer s side. Evidence shows that Dunlop s assertion of inflationary wage claims does not hold systematically and strike incidence is lowered by information spillovers, since claims are revised according to the previous bargaining outcomes. However, in the presence of fairness concerns, the ability to observe outcomes but not the bargaining process does not entail a reduction in information asymmetry sufficient to guarantee Pareto improving bargaining outcomes.

Ce papier présente une étude expérimentale sur l'influence des asymétries d'information et de la diffusion de l'information entre firmes sur l'issue des négociations. Nous proposons un prolongement ainsi qu'un test du modèle de Kuhn et Gu (1999) concernant l'apprentissage dans des négociations séquentielles. Nous utilisons pour cela deux jeux d'ultimatum avec incertitude du coté du proposant. Les résultats expérimentaux montrent que l'hypothèse de Dunlop d'un biais inflationniste systématique des revendications salariales n'est jamais vérifiée et que conformément aux prédictions de Kuhn et Gu, la probabilité d'apparition d'une grève diminue en présence de diffusion de l'information. En effet, une révision des demandes en fonction du résultat des négociations passées est observée dans les données expérimentales. Pourtant, observer seulement le résultat des négociations passées et non le processus de négociation ne suffit à garantir une augmentation Pareto optimale des gains des joueurs. Les préoccupations d'équité entravent les effets bénéfiques de la diffusion de l'information entre firmes.

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Paper provided by CIRANO in its series CIRANO Working Papers with number 2001s-67.

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Date of creation: 01 Dec 2001
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Handle: RePEc:cir:cirwor:2001s-67

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Related research
Keywords: Asymmetric Information; Experiments; Learning; Strikes; Ultimatum Bargaining Games; Asymétrie d'information; Expérimantations; Apprentissage; Grève; Jeux d'ultimatum;

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Find related papers by JEL classification:
C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects
J52 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Dispute Resolution: Strikes, Arbitration, and Mediation

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  1. Hayes, Beth, 1984. "Unions and Strikes with Asymmetric Information," Journal of Labor Economics, University of Chicago Press, vol. 2(1), pages 57-83, January. [Downloadable!] (restricted)
  2. Rapoport, Amnon & Sundali, James A, 1996. "Ultimatums in Two-Person Bargaining with One-Sided Uncertainty: Offer Games," International Journal of Game Theory, Springer, vol. 25(4), pages 475-94.
  3. Forsythe, Robert & Kennan, John & Sopher, Barry, 1991. "An Experimental Analysis of Strikes in Bargaining Games with One-Sided Private Information," American Economic Review, American Economic Association, vol. 81(1), pages 253-78, March. [Downloadable!] (restricted)
  4. Croson, Rachel T. A., 1996. "Information in ultimatum games: An experimental study," Journal of Economic Behavior & Organization, Elsevier, vol. 30(2), pages 197-212, August. [Downloadable!] (restricted)
  5. Mitzkewitz, Michael & Nagel, Rosemarie, 1993. "Experimental Results on Ultimatum Games with Incomplete Information," International Journal of Game Theory, Springer, vol. 22(2), pages 171-98.
  6. Guth, Werner & Huck, Steffen & Ockenfels, Peter, 1996. "Two-Level Ultimatum Bargaining with Incomplete Information: An Experimental Study," Economic Journal, Royal Economic Society, vol. 106(436), pages 593-604, May. [Downloadable!] (restricted)
  7. Kuhn, Peter & Gu, Wulong, 1999. "Learning in Sequential Wage Negotiations: Theory and Evidence," Journal of Labor Economics, University of Chicago Press, vol. 17(1), pages 109-40, January. [Downloadable!] (restricted)
  8. Rapoport, Amnon & Sundali, James A. & Seale, Darryl A., 1996. "Ultimatums in two-person bargaining with one-sided uncertainty: Demand games," Journal of Economic Behavior & Organization, Elsevier, vol. 30(2), pages 173-196, August. [Downloadable!] (restricted)
  9. Cramton, Peter C & Tracy, Joseph S, 1992. "Strikes and Holdouts in Wage Bargaining: Theory and Data," American Economic Review, American Economic Association, vol. 82(1), pages 100-121, March. [Downloadable!] (restricted)
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  10. Kagel, John H. & Kim, Chung & Moser, Donald, 1996. "Fairness in Ultimatum Games with Asymmetric Information and Asymmetric Payoffs," Games and Economic Behavior, Elsevier, vol. 13(1), pages 100-110, March. [Downloadable!] (restricted)
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