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Information and Communication in Sequential Bargaining

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  • Jeannette Brosig
  • Axel Ockenfels
  • Joachim Weimann

Abstract

In experimental bargaining with incomplete information, we vary the information distribution (symmetric and asymmetric), the direction of electronic pre-play communication (no, one-way, and two-way), and the electronic communication medium (email and video) Bargaining out-comes are influenced by the information and communication configurations, but not by the communication medium. In particular, sellers earn more when being informed about buyers' reservation prices (though they are willing to allocate more to buyers than theoretically pre-dicted), but less when communication opportunities are provided.

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Bibliographic Info

Paper provided by Max Planck Institute of Economics, Strategic Interaction Group in its series Papers on Strategic Interaction with number 2003-09.

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Length: 20 pages
Date of creation: Apr 2003
Date of revision:
Handle: RePEc:esi:discus:2003-09

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Related research

Keywords: sequential bargaining; incomplete information; communication; experiment;

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References

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  1. Boles, Terry L. & Croson, Rachel T. A. & Murnighan, J. Keith, 2000. "Deception and Retribution in Repeated Ultimatum Bargaining," Organizational Behavior and Human Decision Processes, Elsevier, vol. 83(2), pages 235-259, November.
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Cited by:
  1. Carsten Schmidt & Ro`i Zultan, 2004. "Unilateral face-to-face communication in ultimatum bargaining - A video experiment," Discussion Paper Series dp369, The Center for the Study of Rationality, Hebrew University, Jerusalem.
  2. Christine Harbring, 2006. "The effect of communication in incentive systems-an experimental study," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 27(5), pages 333-353.
  3. Brosig, Jeannette, 2006. "Communication channels and induced behavior," MPRA Paper 14035, University Library of Munich, Germany.

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