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We experimentally study behavior in a finitely repeated coalition formation game played in real time. Subjects interact in groups of three, bargaining over the distribution of payments which occur at regular time intervals. During a given interval, payments occur if and only if a majority is in...
Persistent link: https://www.econbiz.de/10011422289
Erat and Gneezy (2012) conduct an experiment to test whether people avoid lying in a situation where doing so would lead to a Pareto improvement. They conclude that many people exhibit such a "pure lie aversion." I argue that the experiment does not provide a reliable test for such an aversion,...
Persistent link: https://www.econbiz.de/10011422296
We study a legislative bargaining game in which failure to agree in a given round may result in a breakdown of negotiations. In that case, each player receives an exogenous `disagreement value'. We characterize the set of stationary subgame perfect equilibria under all q-majority rules. Under...
Persistent link: https://www.econbiz.de/10011444314
We present a three-person, two-period bargaining game with private information. A single proposer is seeking to secure agreement to a proposal under either majority or unanimity rule. Two responders have privately known "breakdown values" which determine their payoff in case of "breakdown"....
Persistent link: https://www.econbiz.de/10013269303
We report an experiment on the Probabilistic Serial (PS) mechanism for allocating indivisible goods. The PS mechanism, a recently discovered alternative to the widely used Random Serial Dictatorship mechanism, has attractive fairness and efficiency properties if people report their preferences...
Persistent link: https://www.econbiz.de/10010313111
Experiments can be used to relax technical assumptions that are made by necessity in theoretical analysis, and further test the robustness of theoretical predictions. To illustrate this point we conduct a three-person bargaining experiment examining the effect of different decision rules...
Persistent link: https://www.econbiz.de/10012141438
In experiments which measure subjects' beliefs, both beliefs about others' behavior and beliefs about others' beliefs, are often correlated with a subject's own choices. Such phenomena have been interpreted as evidence of a causal relationship between beliefs and behavior. An alternative...
Persistent link: https://www.econbiz.de/10012141450
We conduct 3-person bargaining experiments in which the surplus being divided is produced by completing a prior task. Using a Baron-Ferejohn framework, we investigate how differences in contributions to production affect bargaining under different decision rules. Under unanimity rule, all...
Persistent link: https://www.econbiz.de/10012141457
Many political systems with direct democracy mechanisms have adopted rules preventing decisions from being made by simple majority rule. The device most commonly added to majority rule in national is a quorum requirement. The two most common are the participation and the approval quora. Such...
Persistent link: https://www.econbiz.de/10012141458
We extend the Baron and Ferejohn (1989) model of multilateral bargaining by allowing the players to attempt commiting to a bargaining position prior to negotiating. If successful, commitment binds a player to reject any proposal which allocates to her a share below a self-imposed threshold. Any...
Persistent link: https://www.econbiz.de/10012545943