The Evolution of Bargaining Behavior

Tore Ellingsen

No 61, SSE/EFI Working Paper Series in Economics and Finance from Stockholm School of Economics

Abstract: The paper examines the evolutionary foundations of bilateral bargaining behavior, emphasizing the trade-off between commitment and flexibility. When the pie's size is certain, evolution favors the "fair" strategy; accept any share greater than or equal to one half, reject any smaller share. The unique outcome is hence an equal split. In noisy environments, more flexible behavior tends to appear in equilibrium. Since flexibility attracts greediness, there is then a positive probability of conflict.

Keywords: Bargaining; evolution; commitment; Coase Theorem (search for similar items in EconPapers)
JEL-codes: C78 (search for similar items in EconPapers)
Pages: 16 pages
Date: 1995-07
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Citations: View citations in EconPapers (2)

Published in Quarterly Journal of Economics, 1997, pages 581-602.

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Persistent link: https://EconPapers.repec.org/RePEc:hhs:hastef:0061

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