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Deadline Effects In Sequential Bargaining — An Experimental Study

Author

Listed:
  • WERNER GÜTH

    (Max Planck Institute for Research into Economic Systems, Strategic Interaction Group, Kahlaische Strasse 10, D-07745 Jena, Germany)

  • M. VITTORIA LEVATI

    (Max Planck Institute for Research into Economic Systems, Strategic Interaction Group, Kahlaische Strasse 10, D-07745 Jena, Germany)

  • BORIS MACIEJOVSKY

    (Max Planck Institute for Research into Economic Systems, Strategic Interaction Group, Kahlaische Strasse 10, D-07745 Jena, Germany)

Abstract

This paper reports on an experiment designed to explore the robustness of the deadline effect in multi period bargaining games using constant and decreasing pies, different time horizons, and constant and alternating roles. Our results indicate that decreasing pies and alternating roles lead to earlier agreements (i.e., attenuate the deadline effect) although only alternating roles significantly reduce the number of conflicts.

Suggested Citation

  • Werner Güth & M. Vittoria Levati & Boris Maciejovsky, 2005. "Deadline Effects In Sequential Bargaining — An Experimental Study," International Game Theory Review (IGTR), World Scientific Publishing Co. Pte. Ltd., vol. 7(02), pages 117-135.
    • Handle: RePEc:wsi:igtrxx:v:07:y:2005:i:02:n:s0219198905000442
    DOI: 10.1142/S0219198905000442
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    Citations

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    Cited by:

    1. Sgobbi, Alessandra & Carraro, Carlo, 2011. "A Stochastic Multiple Players Multi-Issues Bargaining Model for the Piave River Basin," Strategic Behavior and the Environment, now publishers, vol. 1(2), pages 119-150, April.
    2. William Fuchs & Andrzej Skrzypacz, 2013. "Bargaining with Deadlines and Private Information," American Economic Journal: Microeconomics, American Economic Association, vol. 5(4), pages 219-243, November.
    3. Sean P. Sullivan, 2016. "Why Wait to Settle? An Experimental Test of the Asymmetric-Information Hypothesis," Journal of Law and Economics, University of Chicago Press, vol. 59(3), pages 497-525.
    4. Charness, Gary & Kuhn, Peter, 2011. "Lab Labor: What Can Labor Economists Learn from the Lab?," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 4, chapter 3, pages 229-330, Elsevier.
    5. Emin Karagözoglu & Martin G. Kocher, 2015. "Bargaining under Time Pressure," CESifo Working Paper Series 5685, CESifo.
    6. Emin Karagözoğlu & Martin G. Kocher, 2019. "Bargaining under time pressure from deadlines," Experimental Economics, Springer;Economic Science Association, vol. 22(2), pages 419-440, June.

    More about this item

    Keywords

    Ultimatum game; deadline effect; decreasing pie;
    All these keywords.

    JEL classification:

    • B4 - Schools of Economic Thought and Methodology - - Economic Methodology
    • C0 - Mathematical and Quantitative Methods - - General
    • C6 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling
    • C7 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory
    • D5 - Microeconomics - - General Equilibrium and Disequilibrium
    • D7 - Microeconomics - - Analysis of Collective Decision-Making
    • M2 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics

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