Focal points in tacit bargaining problems: Experimental evidence

B-Tier
Journal: European Economic Review
Year: 2013
Volume: 59
Issue: C
Pages: 167-188

Score contribution per author:

0.503 = (α=2.01 / 4 authors) × 1.0x B-tier

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

Abstract

We use a new experimental design to test Schelling's hypotheses about the nature and effectiveness of focal points in tacit bargaining problems. In our design, as in many real-world bargaining problems, each player's strategies are framed as proposals about what part of a stock of valuable objects she is to take, and there are payoff-irrelevant cues which define relations between players and objects. In line with Schelling's hypotheses, we find that such cues serve as powerful focal points. Their presence increases efficiency even in games where there is no efficient and equal division, and induces systematically unequal payoff distributions.

Technical Details

RePEc Handle
repec:eee:eecrev:v:59:y:2013:i:c:p:167-188
Journal Field
General
Author Count
4
Added to Database
2026-01-25