Reference dependent altruism in demand bargaining

B-Tier
Journal: Journal of Economic Behavior and Organization
Year: 2013
Volume: 92
Issue: C
Pages: 127-140

Score contribution per author:

1.005 = (α=2.01 / 2 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We seek to extend our understanding of bargaining preferences, and do so experimentally using the three-player demand bargaining game. In this game, two non-proposers simultaneously state their demands, then the proposer offers, and at least one demand must be satisfied otherwise the proposal fails. Different preferences induce different behavioral patterns. Observed proposals tend to match the lower but not the higher of the two demands. Demands are around the equal split even with experience. This pattern is incompatible with continuous utility functions such as Fehr–Schmidt inequity aversion and CES altruism, which predict competitive demands, but compatible with discontinuous utilities, which we capture in a model of reference dependent altruism.

Technical Details

RePEc Handle
repec:eee:jeborg:v:92:y:2013:i:c:p:127-140
Journal Field
Theory
Author Count
2
Added to Database
2026-01-24