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Consider a model of bargaining, in which two players, 1 and 2, share a pie of size y. The bargaining environment is described by a set of parameters [lamda] that may affect agents' preferences over the agreement sharing, the status quo outcome, or both. The outcomes (i.e., whether an agreement...
Persistent link: https://www.econbiz.de/10003388467
We experimentally investigate multiple notions of equity in ultimatum bargaining with asymmetric outside options. Building on the generalized equity principle formulated by Selten (1978), we derive three different equity rules that can explain 43% of all offers. Our within-subject design further...
Persistent link: https://www.econbiz.de/10010191262
's matching model of unemployment. To the best of our knowledge, this is the first attempt that has been made to implement and … systematically compare these solutions in search-matching economies. Our results are twofold. First from the theoretical …/methodological viewpoint, we extend a somewhat flexible search-matching economy to alternative bargaining solutions. In particular, we prove …
Persistent link: https://www.econbiz.de/10009007407
There is continuing debate about what explains cooperation and self-sacrifice in nature and in particular in humans. This paper suggests a new way to think about this famous problem. I argue that, for an evolutionary biologist as well as a quantitative social scientist, the triangle of two...
Persistent link: https://www.econbiz.de/10010235846
We investigate the matching algorithm used by the German central clearinghouse for university admissions (ZVS) in … criteria applied for admission they all make use of priority matching. In priority matching schemes, it is not a dominant … applicants, we are able to detect some amount of strategic behaviour which can lead to inefficient matching. Alternative ways to …
Persistent link: https://www.econbiz.de/10003672772
The need for efficient coordination is ubiquitous in organizations and industries. The literature on the determinants of efficient coordination has focused on individual decision-making so far. In reality, however, teams often have to coordinate with other teams. We present an experiment with...
Persistent link: https://www.econbiz.de/10003760231
We introduce collective bargaining in a static framework where the firm and its risk-neutral employees negotiate over wages in a non-binding contract setting. Our main result is the equivalence between the non-binding collective equilibrium wage-employment contract and the equilibrium contract...
Persistent link: https://www.econbiz.de/10009230679
performance. Our results are consistent with a simple investment-cum-matching model: pairing the worst performing individuals with … the best yields 20% lower first stage effort than random matching. Pairing the best with the best, however, yields 5 …% higher first stage effort than random matching. In line with the theory the latter result is more pronounced when the task …
Persistent link: https://www.econbiz.de/10011594146
We investigate the role of marital patterns in explaining rising income inequality using a structural marriage matching …
Persistent link: https://www.econbiz.de/10011871663
We analyze the effects of taxation in two-sided matching markets where agents have heterogeneous preferences over … potential partners. Our model provides a continuous link between models of matching with and without transfers. Taxes generate …
Persistent link: https://www.econbiz.de/10012232898