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Time preferences: do they matter in bargaining?

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  • Paola Manzini

    (Queen Mary, University of London and IZA)

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. To the contrary, when the bargaining game is played in conventional experimental setting with monetary cost of delay, these do have an impact on subjects? conduct in negotiations.

Suggested Citation

  • Paola Manzini, 2001. "Time preferences: do they matter in bargaining?," Experimental 0106001, University Library of Munich, Germany.
  • Handle: RePEc:wpa:wuwpex:0106001
    Note: Type of Document - .pdf; prepared on IBM PC ; pages: 37; figures: included. Instructions available upon request
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    References listed on IDEAS

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    Cited by:

    1. 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.
    2. 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.

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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

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