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Decentralized or Collective Bargaining in a Strategy Experiment

Author

Listed:
  • Berninghaus, Siegfried K.

    (Universität Karlsruhe)

  • Gueth, Werner

    (Max Planck Institute for Research into Economic Systems, Strategic Interaction Group)

  • Keser, Claudia

    (Institut für Statistik und Mathematische Wirtschaftstheorie)

Abstract

We present an experiment where two players bargain with a third player. They can bargain either separately or form a joint venture to bargain collectively. Our theoretical benchmark solution predicts decentralized bargaining, as only one player has an interest in forming a joint venture. However, we observe a significant amount of collective bargaining. Collective bargaining, when compared with decentralized bargaining, has no significant effect on the payoffs of the players in the joint venture but reduces the payoff of the third player.

Suggested Citation

  • Berninghaus, Siegfried K. & Gueth, Werner & Keser, Claudia, 1999. "Decentralized or Collective Bargaining in a Strategy Experiment," Sonderforschungsbereich 504 Publications 99-85, Sonderforschungsbereich 504, Universität Mannheim;Sonderforschungsbereich 504, University of Mannheim.
    • Handle: RePEc:xrs:sfbmaa:99-85
    Note: Financial Support from the Deutsche Forschungsgemeinschaft, SFB 504, at the University of Mannheim, is gratefully acknowledged.
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    References listed on IDEAS

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    More about this item

    JEL classification:

    • 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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