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"My friends: it would be an error to accept": Communication and group identity in a bargaining setting

  • Alexander Elbittar

    ()

    (Centro de Investigación y Docencia Económica (CIDE))

  • Andrei Gomberg

    ()

    (Centro de Investigacion Economica (CIE), Instituto Tecnologico Autonomo de Mexico (ITAM))

In this paper we introduce communication into intergroup ultimatum bargaining in a lab. The responder groups vote whether to accept the proposals with unanimity required either for acceptance or for rejection. In contrast with the no-communication results reported in our previous study (Elbittar, Gomberg and Sour 2011), the group decision rule does affect the individual voting behavior when subjects are allowed to exchange messages before voting. In fact, when acceptance is the default, subjects become substantially more likely to vote to reject an offer. As a result, the formal group decision-making rule turns out to have little impact on group decisions, which follow the behavior of the more confronational subjects, as predicted by the "group discontinuity hypothesis" of the psychological literature.

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Paper provided by Centro de Investigacion Economica, ITAM in its series Working Papers with number 1203.

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Length: 26 pages
Date of creation: 2012
Date of revision:
Handle: RePEc:cie:wpaper:1203
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  1. Alexander Elbittar & Andrei Gomberg & Laura Sour, 2004. "Group Decision-Making in Ultimatum Bargaining: An Experimental Study," Levine's Working Paper Archive 122247000000000267, David K. Levine.
  2. Paola Manzini & Marco Mariotti, 2000. "Alliances and Negotiations," Working Papers 424, Queen Mary University of London, School of Economics and Finance.
  3. Kennan, John & Wilson, Robert, 1993. "Bargaining with Private Information," Journal of Economic Literature, American Economic Association, vol. 31(1), pages 45-104, March.
  4. Brit Grosskopf, 2003. "Reinforcement and Directional Learning in the Ultimatum Game with Responder Competition," Experimental Economics, Springer, vol. 6(2), pages 141-158, October.
  5. Putnam, Robert D., 1988. "Diplomacy and domestic politics: the logic of two-level games," International Organization, Cambridge University Press, vol. 42(03), pages 427-460, June.
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