Bargaining over a Common Good with Private Information*

B-Tier
Journal: Scandanavian Journal of Economics
Year: 2009
Volume: 111
Issue: 3
Pages: 547-565

Authors (2)

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

Consider two agents who make sequential claims on a common good, receiving their respective claims only if these are compatible. We let the first mover be privately informed about the size of the good. Conventional theory predicts multiple equilibria, and the intuitive criterion predicts that the first player claims the entire good. Our experimental results reject the intuitive criterion. Private information reduces the claim and the profit of the first mover. However, we cannot reject that the subjects play according to a perfect Bayesian equilibrium (PBE). Most subjects play according to a PBE, and almost all successful coordination occurs at the even split.

Technical Details

RePEc Handle
repec:bla:scandj:v:111:y:2009:i:3:p:547-565
Journal Field
General
Author Count
2
Added to Database
2026-01-25