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On the Impact of Quotas and Decision Rules in Ultimatum Collective Bargaining

Listed author(s):
  • Grimm, Veronika
  • Feicht, Robert
  • Rau, Holger
  • Stephan, Gesine

We conduct multi-person one-shot ultimatum games that reflect important aspects of collective bargaining. In all treatments a proposer has to divide a pie among herself and six recipients that are divided into two groups of three. The proposer cannot discriminate among, but across group members. Acceptance decisions are taken by a committee of three representatives from one or both groups. In a 2x2 design we vary (i) representation in the decision committee (one vs. both groups) and (ii) the decision rule (unanimity vs. majority voting). We find that (i) representation of a group in the committee is crucial for receiving a significant share, (ii), proposals are more balanced if both groups have veto power (iii) acceptance rates are only high when the environment gives a clear idea of what an appropriate proposal is. Non--binding communication reduces rejection rates and proposer shares.

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File URL: https://www.econstor.eu/bitstream/10419/112939/1/VfS_2015_pid_470.pdf
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Paper provided by Verein für Socialpolitik / German Economic Association in its series Annual Conference 2015 (Muenster): Economic Development - Theory and Policy with number 112939.

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Date of creation: 2015
Handle: RePEc:zbw:vfsc15:112939
Contact details of provider: Web page: http://www.socialpolitik.org/
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