Bargaining and the role of negotiators' competitiveness
Emmanuel Peterle () and
Holger A. Rau
No 341, Center for European, Governance and Economic Development Research Discussion Papers from University of Goettingen, Department of Economics
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 results show that highly competitive proposers earn less, since they make lower offers, which are more often rejected. Similarly, highly competitive responders achieve lower payoffs, since they request excessive amounts which induces lower proposals. These findings 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 perspective our findings highlight that giving thought to employees' competitiveness before delegating them to participate in negotiations may pay off.
Keywords: Bargaining; Competitiveness; Experiment (search for similar items in EconPapers)
JEL-codes: C91 M54 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-exp and nep-gth
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
Working Paper: Bargaining and the Role of Negotiators’ Competitiveness (2018)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:zbw:cegedp:341
Access Statistics for this paper
More papers in Center for European, Governance and Economic Development Research Discussion Papers from University of Goettingen, Department of Economics Contact information at EDIRC.
Bibliographic data for series maintained by ZBW - Leibniz Information Centre for Economics ().