Bargaining over a Common Good with Private Information
Consider two agents who make sequential claims on a common good, receiving their respective claims only if these are compatible. We let the first mover be privately informed about the size of the good. Conventional theory predicts multiple equilibria, and the intuitive criterion predicts that the first player claims the entire good. Our experimental results reject the intuitive criterion. Private information reduces the claim and the profit of the first mover. However, we cannot reject that the subjects play according to a perfect Bayesian equilibrium (PBE). Most subjects play according to a PBE, and almost all successful coordination occurs at the even split. Copyright © The editors of the "Scandinavian Journal of Economics" 2009. .
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 111 (2009)
Issue (Month): 3 (09)
|Contact details of provider:|| Web page: http://onlinelibrary.wiley.com/journal/10.1111/(ISSN)1467-9442|
|Order Information:||Web: http://www.blackwellpublishing.com/subs.asp?ref=0347-0520|