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Ownership, punishment, and norms in a real-effort bargaining experiment

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  • Ridinger, Garret

Abstract

This paper examines the importance of prior ownership and punishment in bargaining over a jointly produced surplus. Using a laboratory experiment, participants jointly produce a surplus using a real effort task with the entire surplus given to the person who put in higher effort. Participants then bargain over the surplus in a series of ultimatum games. Treatments varied whether the proposer or responder received the surplus prior to bargaining and the threat point of the responder. The results suggest that proposers respect prior ownership when the responder has a strong ability to punish, but not when punishment is weak. Responders respect prior ownership when their ability to punish is weak, but reject at high rates when they have strong punishment. An independent measure of individual sensitivity to rule following can explain some of the results, adding support to the theory that individual behavior in bargaining is driven in part by adherence to social norms.

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  • Ridinger, Garret, 2018. "Ownership, punishment, and norms in a real-effort bargaining experiment," Journal of Economic Behavior & Organization, Elsevier, vol. 155(C), pages 382-402.
    • Handle: RePEc:eee:jeborg:v:155:y:2018:i:c:p:382-402
    DOI: 10.1016/j.jebo.2018.09.008
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    Cited by:

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    5. Regine Oexl & Anita Gantner, 2021. "Respecting Entitlements in Legislative Bargaining - A Matter of Preference or Necessity?," Working Papers 2021-25, Faculty of Economics and Statistics, Universität Innsbruck.
    6. Mago, Shakun D. & Pate, Jennifer & Razzolini, Laura, 2024. "Experimental evidence on the role of outside obligations in wage negotiations," Journal of Economic Behavior & Organization, Elsevier, vol. 219(C), pages 528-548.
    7. Erik O. Kimbrough & Erin L. Krupka & Rajnish Kumar & Jennifer M. Murray & Abhijit Ramalingam & Sharon Sánchez-Franco & Olga L. Sarmiento & Frank Kee & Ruth F. Hunter, 2024. "On the stability of norms and norm-following propensity: a cross-cultural panel study with adolescents," Experimental Economics, Springer;Economic Science Association, vol. 27(2), pages 351-378, April.

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    More about this item

    Keywords

    Bargaining; Ownership; Social norms; Real effort;
    All these keywords.

    JEL classification:

    • C70 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - General
    • C90 - Mathematical and Quantitative Methods - - Design of Experiments - - - General
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions

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