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Information and Communication in Sequential Bargaining

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Author Info
Jeannette Brosig
Axel Ockenfels
Joachim Weimann

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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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Publisher 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
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Handle: RePEc:esi:discus:2003-09

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

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

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  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. [Downloadable!] (restricted)
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(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Carsten Schmidt & Ro`i Zultan, 2004. "Unilateral face-to-face communication in ultimatum bargaining - A video experiment," Discussion Paper Series dp369, Center for Rationality and Interactive Decision Theory, Hebrew University, Jerusalem. [Downloadable!]
    Other versions:
  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. [Downloadable!]
  3. Brosig, Jeannette, 2006. "Communication channels and induced behavior," MPRA Paper 14035, University Library of Munich, Germany. [Downloadable!]
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This page was last updated on 2009-11-25.

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