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Strategic Delegation: An Experiment

Author

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  • Fershtman, Chaim
  • Gneezy, Uri

Abstract

We examine the effects of strategic delegation in a simple ultimatum game experiment. Specifically, we show that when the proposer uses a delegate, his share increases. Since in such a case the proposer does not use the delegate as a commitment device, this effect identifies an additional explanation of the delegation phenomenon. This result holds when delegation is mandatory or optional. We also show that unobserved delegation by the responder reduces his share as his delegate is perceived to be more willing to accept tough offers. Copyright 2001 by the RAND Corporation.

Suggested Citation

  • Fershtman, Chaim & Gneezy, Uri, 2001. "Strategic Delegation: An Experiment," RAND Journal of Economics, The RAND Corporation, vol. 32(2), pages 352-368, Summer.
    • Handle: RePEc:rje:randje:v:32:y:2001:i:2:p:352-68
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    JEL classification:

    • C7 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory

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