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Information and Communication in Sequential Bargaining

  • Jeannette Brosig
  • Axel Ockenfels
  • Joachim Weimann

In experimental bargaining with incomplete information, we vary the information distribution (symmetric and asymmetric), the direction of electronic pre-play communication (no, one-way, and two-way), and the electronic communication medium (email and video) Bargaining out-comes are influenced by the information and communication configurations, but not by the communication medium. In particular, sellers earn more when being informed about buyers' reservation prices (though they are willing to allocate more to buyers than theoretically pre-dicted), but less when communication opportunities are provided.

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Paper provided by Max Planck Institute of Economics, Strategic Interaction Group in its series Papers on Strategic Interaction with number 2003-09.

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Length: 20 pages
Date of creation: Apr 2003
Date of revision:
Handle: RePEc:esi:discus:2003-09
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  1. Boles, Terry L. & Croson, Rachel T. A. & Murnighan, J. Keith, 2000. "Deception and Retribution in Repeated Ultimatum Bargaining," Organizational Behavior and Human Decision Processes, Elsevier, vol. 83(2), pages 235-259, November.
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