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Who cares about the balderdash I spouted yesterday?* – An experiment on the volatility of bargaining norms –

Author

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  • Stephan Schosser

    (Faculty of Economics and Management, Otto-von-Guericke University Magdeburg)

Abstract

When talking about possible bargaining results participants in the Nash bargaining game mainly use fairness norms to support their favored outcome. According to theory a variety of different, fair solutions exists from which the participants can choose. In this paper, we experimentally investigate Nash bargaining with a previous opportunity to chat about the bargaining outcome. We find that playing a dictator game prior to the Nash bargaining game establishes – without any additional communication – a fairness norm, the participants resort to. However, if nothing is played prior to the Nash bargaining game, participants discuss longer about what to play. In addition, we find that deviations in favor of one participant occur the longer preplay communication lasts.

Suggested Citation

  • Stephan Schosser, 2015. "Who cares about the balderdash I spouted yesterday?* – An experiment on the volatility of bargaining norms –," FEMM Working Papers 150013, Otto-von-Guericke University Magdeburg, Faculty of Economics and Management.
    • Handle: RePEc:mag:wpaper:150013
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    References listed on IDEAS

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    Keywords

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    JEL classification:

    • C7 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory
    • C9 - Mathematical and Quantitative Methods - - Design of Experiments

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