Efficiency, Equality, and Labeling: An Experimental Investigation of Focal Points in Explicit Bargaining

S-Tier
Journal: American Economic Review
Year: 2014
Volume: 104
Issue: 10
Pages: 3256-87

Score contribution per author:

2.011 = (α=2.01 / 4 authors) × 4.0x S-tier

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

Abstract

We investigate Schelling's hypothesis that payoff-irrelevant labels ("cues") can influence the outcomes of bargaining games with communication. In our experimental games, players negotiate over the division of a surplus by claiming valuable objects that have payoff-irrelevant spatial locations. Negotiation occurs in continuous time, constrained by a deadline. In some games, spatial cues are opposed to principles of equality or efficiency. We find a strong tendency for players to agree on efficient and minimally unequal payoff divisions, even if spatial cues suggest otherwise. But if there are two such divisions, cues are often used to select between them, inducing distributional effects.

Technical Details

RePEc Handle
repec:aea:aecrev:v:104:y:2014:i:10:p:3256-87
Journal Field
General
Author Count
4
Added to Database
2026-01-25