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Decentralized or Collective Bargaining in a Strategy Experiment

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  • Siegfried K. Berninghaus
  • Werner Güth
  • Claudia Keser

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Abstract

We present an experiment where two players bargain with a third player. They can bargain either separately or form a joint venture to bargain collectively. Our theoretical benchmark solution predicts decentralized bargaining, as only one player has an interest in forming a joint venture. However, we observe a significant amount of collective bargaining. Collective bargaining, when compared with decentralized bargaining, has no significant effect on the payoffs of the players in the joint venture but reduces the payoff of the third player. Nous présentons une expérience dans laquelle deux joueurs négocient avec un troisième joueur. Les deux joueurs peuvent négocier séparément ou former une coalition pour négocier collectivement avec le troisième. La solution théorique de référence prédit des négociations décentralisées, car seulement un des joueurs a intérêt à former une coalition. Les résultats de l'expérience montrent un nombre significatif de négociations collectives. Lorsque comparée à la négociation décentralisée, la négociation collective n'a pas d'effets significatifs sur les profits des joueurs de la coalition,0501s réduit le profit du troisième.

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Bibliographic Info

Paper provided by CIRANO in its series CIRANO Working Papers with number 99s-31.

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Date of creation: 01 Oct 1999
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Handle: RePEc:cir:cirwor:99s-31

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Keywords: Bargaining; joint venture; experimental economics; equilibrium selection; Négociation; coalition; économie expérimentale; sélection d'équilibre;

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  1. Ngo Van Long & Antoine Soubeyran, 1999. "Input Price Discrimination, Access Pricing, and Bypass," CIRANO Working Papers 99s-23, CIRANO.
  2. Marcel Boyer, 1999. "Les Expos, l'OSM, les universités, les hôpitaux : Le coût d'un déficit de 400 000 emplois au Québec = Expos, Montreal Symphony Orchestra, Universities, Hospitals: The Cost of a 400,000-Job Shortf," CIRANO Papers 99c-01, CIRANO.
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