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Bargaining and the Role of Negotiatorsâ Competitiveness

Claudia Keser, Stephan Müller, Emmanuel Peterlé and Holger A. Rau
Authors registered in the RePEc Author Service: Emmanuel Peterle ()

CIRANO Working Papers from CIRANO

Abstract: This paper experimentally tests the relation between subjects’ competitiveness and bargaining behavior. Bargaining is investigated in a demand-ultimatum game, where the responder can request a share of the pie from the proposer. The re-sults show that highly competitive proposers earn less, since they make lower o?ers, which are more often rejected. Similarly, highly competitive responders achieve lower payo?s, since they request excessive amounts which induces lower proposals. These ?ndings establish a link between competitiveness and bargaining as suggested by social and evolutionary psychology. Thus, we identify one driver of the empirical heterogeneity of bargaining behavior and outcomes. From a management perspec-tive our ?ndings highlight that giving thought to employees’ competitiveness before delegating them to participate in negotiations may pay o?.

Keywords: Bargaining; Competitiveness; Experiment (search for similar items in EconPapers)
JEL-codes: C91 M54 (search for similar items in EconPapers)
Date: 2018-04-05
New Economics Papers: this item is included in nep-exp and nep-gth
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