Refining Raiffa – Aspiration Adaptation within the Zone of Possible Ag

Ahlert Marlies and Sträter Katharina Friederike
Additional contact information
Ahlert Marlies: Martin Luther University Halle-Wittenberg,Halle, Germany
Sträter Katharina Friederike: Martin Luther University Halle-Wittenberg,Halle, Germany

German Economic Review, 2016, vol. 17, issue 3, 298-315

Abstract: One of the most well-known descriptive bargaining models is Raiffa’s Zone of Possible Agreements (ZOPA). We reinterpret Raiffa’s model of a price negotiation in the realm of bounded rationality by applying Simon’s theory of Satisficing. Afterward we refine Raiffa’s negotiation model using Aspiration Adaptation Theory as suggested by Sauermann, Selten, Tietz and others. We offer a model of a concession process that gives precision to the Dance of Concessions in Raiffa’s model by applying axioms of bounded rationality. Raiffa suggests a solution point derived from equity in price dimension, whereas we propose an area solution defined by equity in aspiration levels.

Keywords: Aspiration adaptation theory; bargaining; bounded rationality; satisficing; ZOPA (search for similar items in EconPapers)
Date: 2016
References: Add references at CitEc
Citations:

Downloads: (external link)
https://doi.org/10.1111/geer.12096 (text/html)
For access to full text, subscription to the journal or payment for the individual article is required.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bpj:germec:v:17:y:2016:i:3:p:298-315

Ordering information: This journal article can be ordered from
https://www.degruyter.com/journal/key/ger/html

DOI: 10.1111/geer.12096

Access Statistics for this article

German Economic Review is currently edited by Peter Egger, Almut Balleer, Jesus Crespo-Cuaresma, Mario Larch, Aderonke Osikominu and Georg Wamser

More articles in German Economic Review from De Gruyter
Bibliographic data for series maintained by Peter Golla ().