On the Adjudication of Conflicting Claims: An Experimental Study

Carmen Herrero () and C.
Authors registered in the RePEc Author Service: Juan D. Moreno-Ternero

No 166, Econometric Society 2004 North American Summer Meetings from Econometric Society

Abstract: This paper reports an experimental study on three well known solutions for claims problems, that is, the constrained equal-awards, the proportional, and the constrained equal-losses rules. To do this, we first let subjects play three games designed such that the unique equilibrium allocation coincides with the recommendation of one of these three rules. Moreover, we also let subjects play an additional game, that has the property that all (and only) strategy profiles in which players coordinate on the same rule constitute a strict Nash equilibrium. While in the first three games subjects? play easily converges to the unique equilibrium rule, in the last game the proportional rule overwhelmingly prevails as a coordination device. We also administered a questionnaire to a different group of students, asking them to act as an impartial arbitrator to solve (among others) the same claims situations played in the lab. Also in this case, the proportional solution was selected by the vast majority of respondents

Keywords: Experimental Economics; Claims problems; Proportional rule (search for similar items in EconPapers)
JEL-codes: D63 (search for similar items in EconPapers)
Date: 2004-08-11
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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http://repec.org/esNASM04/up.9578.1074890352.pdf (application/pdf)

Related works:
Journal Article: On the adjudication of conflicting claims: an experimental study (2010)
Working Paper: On the adjudication of conflicting claims: an experimental study (2010)
Journal Article: On the adjudication of conflicting claims: an experimental study (2009)
Working Paper: On the Adjudication of Conflicting Claims: An Experimental Study (2009)
Working Paper: On the Adjudication of Conflicting Claims: An Experimental Study (2009)
Working Paper: On the adjudication of conflicting claims: an experimental study (2006)
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