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Real time tacit bargaining, payoff focality, and coordination complexity: Experimental evidence

Listed author(s):
  • Wolfgang Luhan

    (Ruhr University Bochum)

  • Anders Poulsen

    (University of East Anglia)

  • Michael Roos

    (Ruhr University Bochum)

We report experimental data from a bargaining situation where two decision makers tacitly make their decisions, and earn and cumulate their payoffs in real time. Examples include fishermen choosing fishing spots, interaction among neighbors who prefer not to talk, military conflict, and tacit duopoly. The data can be organized and explained in terms of focal properties of feasible payoffs, and the complexity of coordinating on the intertemporal behavior required to achieve these payoffs. Bargainers trade off payoff focality and coordination complexity, and behavior can be systematically inefficient.

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File URL: https://www.uea.ac.uk/documents/166500/0/CBESS+15-11+2.pdf/3d482e31-a46f-48ac-8b0c-1cd9fab2a847
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Paper provided by School of Economics, University of East Anglia, Norwich, UK. in its series Working Paper series, University of East Anglia, Centre for Behavioural and Experimental Social Science (CBESS) with number 15-11.

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Date of creation: 15 Jul 2015
Handle: RePEc:uea:wcbess:15-11
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