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Learning from Strikes

  • 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)

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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Paper provided by HAL in its series Post-Print with number halshs-00151430.

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Date of creation: 2001
Date of revision:
Publication status: Published in Working paper du GATE n° 16-2001. 2001
Handle: RePEc:hal:journl:halshs-00151430
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  3. 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 253-78, March.
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  7. Mitzkewitz, Michael & Nagel, Rosemarie, 1993. "Experimental Results on Ultimatum Games with Incomplete Information," International Journal of Game Theory, Springer;Game Theory Society, vol. 22(2), pages 171-98.
  8. Rabin, Matthew, 2002. "A Perspective on Psychology and Economics," Department of Economics, Working Paper Series qt2wr3z049, Department of Economics, Institute for Business and Economic Research, UC Berkeley.
  9. 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.
  10. David Card, 1990. "Strikes and Wages: A Test of an Asymmetric Information Model," The Quarterly Journal of Economics, Oxford University Press, vol. 105(3), pages 625-659.
  11. Rapoport, Amnon & Sundali, James A, 1996. "Ultimatums in Two-Person Bargaining with One-Sided Uncertainty: Offer Games," International Journal of Game Theory, Springer;Game Theory Society, vol. 25(4), pages 475-94.
  12. 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.
  13. Rapoport, Amnon & Sundali, James A. & Seale, Darryl A., 1996. "Ultimatums in two-person bargaining with one-sided uncertainty: Demand games," Journal of Economic Behavior & Organization, Elsevier, vol. 30(2), pages 173-196, August.
  14. 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 109-40, January.
  15. Shotter, A. & Sopher, B., 2001. "Advice and Behavior in Intergenerational Ultimatum Games: An Experimental Approach," Working Papers 01-04, C.V. Starr Center for Applied Economics, New York University.
  16. Smith, Vernon L, 1982. "Microeconomic Systems as an Experimental Science," American Economic Review, American Economic Association, vol. 72(5), pages 923-55, December.
  17. Myerson, Roger B, 1984. "Two-Person Bargaining Problems with Incomplete Information," Econometrica, Econometric Society, vol. 52(2), pages 461-87, March.
  18. Brookshire, David S & Coursey, Don L & Schulze, William D, 1987. "The External Validity of Experimental Economics Techniques: Analysis of Demand Behavior," Economic Inquiry, Western Economic Association International, vol. 25(2), pages 239-50, April.
  19. Kuhn, Peter & Gu, Wulong, 1998. "Centralization and strikes," Labour Economics, Elsevier, vol. 5(3), pages 243-265, September.
  20. 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.
  21. 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.
  22. Colin F. Camerer & Richard H. Thaler, 1995. "Anomalies: Ultimatums, Dictators and Manners," Journal of Economic Perspectives, American Economic Association, vol. 9(2), pages 209-219, Spring.
  23. J.Keith Murnighan & MIchael Saxon, 1998. "Ultimatum bargaining by children and adults," Artefactual Field Experiments 00100, The Field Experiments Website.
  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.
  25. Axel Ockenfels & Gary E. Bolton, 2000. "ERC: A Theory of Equity, Reciprocity, and Competition," American Economic Review, American Economic Association, vol. 90(1), pages 166-193, March.
  26. Werner Guth & Reinhard Tietz, 1997. "Ultimatum bargaining behavior: a survey and comparison of experimental results," Levine's Working Paper Archive 1160, David K. Levine.
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