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Moral Property Rights in Bargaining with Infeasible Claims

Author

Listed:
  • Simon Gächter

    () (CESifo, and University of St Gallen)

  • Arno Riedl

    () (Faculty of Economics and Econometrics, University of Amsterdam)

Abstract

In many business transactions, in labor-management relations, in internationalconflicts, and welfare state reforms bargainers hold strong entitlements that are oftengenerated by claims that are not feasible any more. These entitlements seem to considerablyshape negotiation behavior. By using the novel setup of a 'bargaining with claims' experimentwe provide new systematic evidence tracking the influence of entitlements and obligationsthrough the whole bargaining process. We find strong entitlement effects that shape openingoffers, bargaining duration, concessions and reached (dis-)agreements. We argue thatentitlements constitute a 'moral property right' that is influential independent ofnegotiators' legal property rights.

Suggested Citation

  • Simon Gächter & Arno Riedl, 2003. "Moral Property Rights in Bargaining with Infeasible Claims," Tinbergen Institute Discussion Papers 03-055/1, Tinbergen Institute.
  • Handle: RePEc:tin:wpaper:20030055
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    References listed on IDEAS

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    More about this item

    Keywords

    Moral property rights; fairness judgments; bargaining with claims; self-serving bias;

    JEL classification:

    • A12 - General Economics and Teaching - - General Economics - - - Relation of Economics to Other Disciplines
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior

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