From ultimatum to Nash bargaining: Theory and experimental evidence

A-Tier
Journal: Experimental Economics
Year: 2006
Volume: 9
Issue: 1
Pages: 17-33

Authors (4)

Sven Fischer (not in RePEc) Werner Güth (Libera Università Internaziona...) Wieland Müller (Universität Wien) Andreas Stiehler (not in RePEc)

Score contribution per author:

1.005 = (α=2.01 / 4 authors) × 2.0x A-tier

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

Abstract

We consider a sequential two-party bargaining game with uncertain information transmission. When the first mover states her demand she does only know the probability with which the second mover will be informed about it. The informed second mover can either accept or reject the offer and payoffs are determined as in the ultimatum game. Otherwise the uninformed second mover states his own demand and payoffs are determined as in the Nash demand game. In the experiment we vary the commonly known probability of information transmission. Our main finding is that first movers’ and uninformed second movers’ demands adjust to this probability as qualitatively predicted, that is, first movers’ (uninformed second movers’) demands are lower (higher) the lower the probability of information transmission. Copyright Springer Science + Business Media, LLC 2006

Technical Details

RePEc Handle
repec:kap:expeco:v:9:y:2006:i:1:p:17-33
Journal Field
Experimental
Author Count
4
Added to Database
2026-01-25