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Effects of Profitable Downsizing on Collective Bargaining

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Author Info
Sven Fischer () (Department of Economics, University College London)
Werner Güth () (Max Planck Institute of Economics, Jena)
Christoph Köhler (Friedrich-Schiller-University Jena, Institute for Sociology, Economic and Social Structure Group)
Abstract

We experimentally test how acceptance thresholds react to the decision of the proposer in a three party ultimatum game to exclude one of two responders with veto power from the game. We elicit responder acceptance thresholds in case the proposer decides to exclude one of them, what increases the available pie, and in case he doesn't exclude him despite strong monetary incentives. We ?nd that on the aggregate level the proposer's decision has no effect on acceptance thresholds. However, if the proposer excludes one responder, the distribution of thresholds becomes bimodal, indicating a polarization in behavior.

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Paper provided by Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics, Thueringer Universitaets- und Landesbibliothek in its series Jena Economic Research Papers with number 2008-011.

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Date of creation: 12 Feb 2008
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Handle: RePEc:jrp:jrpwrp:2008-011

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Related research
Keywords: bargaining experiment labor markets

Find related papers by JEL classification:
C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
J52 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Dispute Resolution: Strikes, Arbitration, and Mediation

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This page was last updated on 2008-7-17.


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