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Behind the screens: A replication and extension of Coasian bargaining experiments in the digital age

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  • Backstrom, Jesse D.
  • Eckel, Catherine C.
  • Rholes, Ryan
  • Tangvatcharapong, Meradee

Abstract

This paper replicates Hoffman and Spitzer's seminal Coasian bargaining experiments from the early 1980s and extends them to examine the impact of digital communication. We find that, while the face-to-face replication results mostly align with the original findings, transitioning to a digital environment induces a 23.3 percent decrease in efficient decision-making and over a fourfold increase in self-regarding behavior. These effects are amplified in one-shot bargaining scenarios and when property rights are strengthened and persist as bargainers gain experience. Our findings allude to several implications of digital communication for efficiency and welfare distributions in negotiation settings.

Suggested Citation

  • Backstrom, Jesse D. & Eckel, Catherine C. & Rholes, Ryan & Tangvatcharapong, Meradee, 2025. "Behind the screens: A replication and extension of Coasian bargaining experiments in the digital age," European Economic Review, Elsevier, vol. 175(C).
    • Handle: RePEc:eee:eecrev:v:175:y:2025:i:c:s0014292125000741
    DOI: 10.1016/j.euroecorev.2025.105024
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    Keywords

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    JEL classification:

    • D9 - Microeconomics - - Micro-Based Behavioral Economics
    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
    • J52 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Dispute Resolution: Strikes, Arbitration, and Mediation
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis
    • D62 - Microeconomics - - Welfare Economics - - - Externalities
    • K00 - Law and Economics - - General - - - General (including Data Sources and Description)
    • Q00 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - General

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