Bargaining, Independence, and the Rationality of Fair Division

Giuseppe (Pino) Lopomo and Efe Ok

Working Papers from C.V. Starr Center for Applied Economics, New York University

Abstract: We consider two person bargaining games with independent preferences, with and without bilateral incomplete information. We show that, both in the ultimatum game and in the two-stage alternating-offers game, our equilibrium predictions are fully consistent with all robust experimental regularities which falsify the standard game theoretic model: occurrence of disagreements, disadvantageous counteroffers, and outcomes that come close to the equal split of the pie.

Keywords: BARGAINING; GAMES (search for similar items in EconPapers)
JEL-codes: C78 (search for similar items in EconPapers)
Pages: 31 pages
Date: 1998
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Persistent link: https://EconPapers.repec.org/RePEc:cvs:starer:98-18

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