EconPapers    
Economics at your fingertips  
 

A Bargaining Experiment with Asymmetric Institutions and Preferences

Aaron Kamm and Harold Houba ()
Additional contact information
Aaron Kamm: University of Amsterdam, the Netherlands

No 15-071/II, Tinbergen Institute Discussion Papers from Tinbergen Institute

Abstract: We report results from a laboratory experiment on strategic bargaining with indivisibilities studying the role of asymmetries, both in preferences and institutions. We find that subjects do not fully grasp the equilibrium effects asymmetries have on bargaining power and identify how subjects’ observed behavior systematically deviates from theoretical predictions. The deviations are especially pronounced in case of asymmetric institutions which are modelled as probabilities of being the proposer. Additionally, in contrast to previous experimental work, we observe larger than predicted proposer power since subjects frequently propose and accept their second-preferred option. Quantal response equilibrium and risk aversion explain behavior whenever probabilities are symmetric, but less so when asymmetric. We propose the ‘recognition is power’ heuristic which equates bargaining power with recognition probabilities to explain these findings.

Keywords: Committees; Indivisibilities; Institutions; Preferences; Quantal Response Equilibrium; Condorcet Paradox (search for similar items in EconPapers)
JEL-codes: D71 D72 C92 C7 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-cdm, nep-exp, nep-gth and nep-pol
Date: 2015-06-01, Revised 2018-07-01
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
https://papers.tinbergen.nl/15071.pdf (application/pdf)

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:tin:wpaper:20150071

Access Statistics for this paper

More papers in Tinbergen Institute Discussion Papers from Tinbergen Institute Contact information at EDIRC.
Bibliographic data for series maintained by Tinbergen Office +31 (0)10-4088900 ().

 
Page updated 2019-10-09
Handle: RePEc:tin:wpaper:20150071