In this paper we report an experimental study of the ultimatum game in which subjects bargain for constant and slowly decreasing pies, over 3 and 11 rounds with either constant or alternating offers. With decreasing pies efficiency requires early agreements, whereas constant pies allow for late efficiency. Slowly decreasing pies are here captured by a 10%-decrease of total rewards from the first to the last round. While in the alternating offer bargaining mode roles are exchanged from round to round, in the constant role mode the same party is constantly proposing. Participants play all games with changing partners but keep their role as (initial) proposer or responder over the entire experiment. Our findings offer institutional advice, e.g. that conflict can be avoided by role alternation and time pressure.
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Paper provided by Max Planck Institute of Economics, Strategic Interaction Group in its series Papers on Strategic Interaction with number
2001-01.
Length: 19 pages Date of creation: Oct 2001 Date of revision: Handle: RePEc:esi:discus:2001-01
Note: This paper is part of the EU-TMR Research Network ENDEAR (FMRX-CT98-0238). We are indebted to Ben Greiner, Sylvia Schikora, and Volker Zieman for their research assistance. Contact details of provider: Postal: Kahlaische Strasse 10, D-07745 Jena Phone: +49-3641-68 65 Fax: +49-3641-68 69 90 Web page: http://www.econ.mpg.de/ More information through EDIRC
Find related papers by JEL classification: C70 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - General C90 - Mathematical and Quantitative Methods - - Design of Experiments - - - General D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances
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