An experimental study of sequential bargaining
AbstractIn a study of alternating offer bargaining with discounting, perfect equilibrium was found to have little predictive power under the conventional assumption that bargainers' utility is measured by their monetary payoffs. Instead, the authors' data exhibit a first mover advantage, independent of the equilibrium prediction. However the pattern of rejected offers and counterproposals shows bargainers' utility was not measured by their monetary payoffs. The authors also reanalyze data from earlier experiments, finding a similar pattern of rejections and counterproposals. This suggests that uncontrolled nonmonetary components of utility may have played a role in those experiments also, offering a possible explanation for the mutually inconsistent conclusions reached. Copyright 1989 by American Economic Association.
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Bibliographic InfoPaper provided by David K. Levine in its series Levine's Working Paper Archive with number 331.
Date of creation: 15 Apr 1998
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- Guth, Werner & Schmittberger, Rolf & Schwarze, Bernd, 1982. "An experimental analysis of ultimatum bargaining," Journal of Economic Behavior & Organization, Elsevier, vol. 3(4), pages 367-388, December.
- Roth, Alvin E. & Malouf, Michael W. K. & Murnighan, J. Keith, 1981. "Sociological versus strategic factors in bargaining," Journal of Economic Behavior & Organization, Elsevier, vol. 2(2), pages 153-177, June.
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