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Time Preferences: Do They Matter in Bargaining?

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  • Paola Manzini

    (Queen Mary, University of London)

Abstract

Experimental studies of bargaining generally impose time preferences' on subjects, in the sense that in case of disagreement, the experimenter reduces the size of the surplus bargained over by imposing exogenously some monetary cost. Contrary to this practice, in this study time preferences are first elicited in a preliminary phase, and then bargaining begins. I show that although subjects are sensitive to the timing of a monetary reward, this plays no role in determining bargaining behaviour. Furthermore, when the bargaining game is played in conventional experimental setting with monetary costs of delay, these do have an impact on subjects' conduct in negotiations.

Suggested Citation

  • Paola Manzini, 2001. "Time Preferences: Do They Matter in Bargaining?," Working Papers 445, Queen Mary University of London, School of Economics and Finance.
    • Handle: RePEc:qmw:qmwecw:445
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    Cited by:

    1. Jeongbin Kim & Wooyoung Lim & Sebastian Schweighofer-Kodritsch, 2023. "Patience Is Power: Bargaining and Payoff Delay," Berlin School of Economics Discussion Papers 0015, Berlin School of Economics.
    2. Kim, Jeongbin & Lim, Wooyoung & Schweighofer-Kodritsch, Sebastian, 2020. "Bargaining and Time Preferences: An Experimental Study," Rationality and Competition Discussion Paper Series 254, CRC TRR 190 Rationality and Competition.

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    More about this item

    Keywords

    Bargaining; Time preferences; Experiments;
    All these keywords.

    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

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