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Moral Property Rights in Bargaining with Infeasible Claims

Author

Listed:
  • Simon Gächter

    (CESifo, IZA, and School of Economics, University of Nottingham, University Park, Nottingham NG7 2RD, United Kingdom)

  • Arno Riedl

    (IZA, Tinbergen Institute, and University of Amsterdam, CREED, Faculty of Economics and Econometrics, Roetersstraat 11, NL-1018 WB Amsterdam, The Netherlands)

Abstract

In many business transactions, labor-management relations, international conflicts, and welfare-state reforms, bargainers hold strong entitlements that are often generated by claims that are not feasible anymore. These entitlements seem to shape negotiation behavior considerably. By using the novel setup of a Übargaining with claimsÝ experiment, we provide new systematic evidence tracking the influence of entitlements and obligations through the whole bargaining process. We find strong entitlement effects that shape opening offers, bargaining duration, concessions, and (dis)agreements. We argue that entitlements constitute a Ümoral property rightÝ that is influential independent of negotiators' legal property rights.

Suggested Citation

  • Simon Gächter & Arno Riedl, 2005. "Moral Property Rights in Bargaining with Infeasible Claims," Management Science, INFORMS, vol. 51(2), pages 249-263, February.
    • Handle: RePEc:inm:ormnsc:v:51:y:2005:i:2:p:249-263
    DOI: 10.1287/mnsc.1040.0311
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    More about this item

    Keywords

    moral property rights; entitlements; fairness judgments; bargaining with claims; self-serving bias; experiment;
    All these keywords.

    JEL classification:

    • A12 - General Economics and Teaching - - General Economics - - - Relation of Economics to Other Disciplines
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior

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