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Bargaining with Two-Person-Groups - On the Insignificance of the Patient Partner

Author

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  • Oliver Kirchkamp

    (School of Economics and Business Administration, Friedrich-Schiller-University Jena)

  • Ulrike Vollstädt

Abstract

Although many real bargaining situations involve more than two people, much of the theoretical and experimental research concentrates on the two player situation. We study the simplest possible extension: four people (two two-person groups) of different patience bargain with each other. Theoretically, only the more patient member of each group should be relevant for the outcome. The less patient members would agree to any outcome and are, hence, irrelevant. We find, however, that the impact of the patient member can be quite small.

Suggested Citation

  • Oliver Kirchkamp & Ulrike Vollstädt, 2012. "Bargaining with Two-Person-Groups - On the Insignificance of the Patient Partner," Jena Economics Research Papers 2012-043, Friedrich-Schiller-University Jena.
    • Handle: RePEc:jrp:jrpwrp:2012-043
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    References listed on IDEAS

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    More about this item

    Keywords

    bargaining experiment; heterogeneous group members;

    JEL classification:

    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions

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