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Learning from Strikes

Author Info

Listed author(s):
  • Fabienne Tournadre

    (Institut du travail - Université Robert Schuman - Strasbourg III)

  • Marie Claire Villeval

    ()

    (GATE - Groupe d'analyse et de théorie économique - CNRS - UL2 - Université Lumière - Lyon 2 - Ecole Normale Supérieure Lettres et Sciences Humaines)

Abstract

This paper reports on an experimental study of the influence of asymmetric information and information spillovers on bargaining outcomes. It develops and tests Kuhn and Gu's model (1999) of learning in sequential wage negotiations, by means of two Ultimatum Bargaining Games with uncertainty on the proposer's side. Evidence shows that Dunlop's assertion of inflationary wage demands does not systematically hold and strike incidence is lowered by information spillovers, since demands are revised according to previous bargaining outcomes. However, in the presence of fairness concerns, the ability to observe outcomes but not the bargaining process does not entail a sufficient reduction in information asymmetry to a point of guaranteeing Pareto-improved bargaining outcomes.

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File URL: https://halshs.archives-ouvertes.fr/halshs-00151430/document
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Paper provided by HAL in its series Post-Print with number halshs-00151430.

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Date of creation: 2001
Publication status: Published in Working paper du GATE n° 16-2001. 2001
Handle: RePEc:hal:journl:halshs-00151430
Note: View the original document on HAL open archive server: https://halshs.archives-ouvertes.fr/halshs-00151430
Contact details of provider: Web page: https://hal.archives-ouvertes.fr/

Keywords: asymmetric information; experimental economics; learning; strikes; ultimatum bargaining games; apprentissage; asymétries d'information; économie expérimentale; grève; jeux d'ultimatum;

Other versions of this item:

Find related papers by JEL classification:
  • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
  • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
  • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
  • J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects
  • J52 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Dispute Resolution: Strikes, Arbitration, and Mediation

References listed on IDEAS
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  1. Rabin, Matthew, 2002. "A perspective on psychology and economics," European Economic Review, Elsevier, vol. 46(4-5), pages 657-685, May.
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  16. Guth, Werner & Tietz, Reinhard, 1990. "Ultimatum bargaining behavior : A survey and comparison of experimental results," Journal of Economic Psychology, Elsevier, vol. 11(3), pages 417-449, September.
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  18. Cramton, Peter C & Tracy, Joseph S, 1992. "Strikes and Holdouts in Wage Bargaining: Theory and Data," American Economic Review, American Economic Association, vol. 82(1), pages 100-121, March.
  19. Straub, Paul G. & Murnighan, J. Keith, 1995. "An experimental investigation of ultimatum games: information, fairness, expectations, and lowest acceptable offers," Journal of Economic Behavior & Organization, Elsevier, vol. 27(3), pages 345-364, August.
  20. Guth, Werner & Huck, Steffen & Ockenfels, Peter, 1996. "Two-Level Ultimatum Bargaining with Incomplete Information: An Experimental Study," Economic Journal, Royal Economic Society, vol. 106(436), pages 593-604, May.
  21. Kagel, John H. & Kim, Chung & Moser, Donald, 1996. "Fairness in Ultimatum Games with Asymmetric Information and Asymmetric Payoffs," Games and Economic Behavior, Elsevier, vol. 13(1), pages 100-110, March.
  22. Forsythe, Robert & Kennan, John & Sopher, Barry, 1991. "An Experimental Analysis of Strikes in Bargaining Games with One-Sided Private Information," American Economic Review, American Economic Association, vol. 81(1), pages 253-278, March.
  23. Kuhn, Peter & Gu, Wulong, 1999. "Learning in Sequential Wage Negotiations: Theory and Evidence," Journal of Labor Economics, University of Chicago Press, vol. 17(1), pages 109-140, January.
  24. Manuel Arellano & Stephen Bond, 1991. "Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations," Review of Economic Studies, Oxford University Press, vol. 58(2), pages 277-297.
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Cited by:

  1. Lehr, Alex & Vyrastekova, Jana & Akkerman, Agnes & Torenvlied, René, 2016. "Spillovers and conflict in wage bargaining: Experimental evidence," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 63(C), pages 59-68.

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