We report the first ultimatum game experiment with bargaining over waiting time. The experiment was created to avoid effects of windfall gains. In contrast to donated money, time is not endowed by the experimenter and implies a natural loss to the subjects. This allows for a better measurement of the inherent conflict in the ultimatum game. We implemented three anonymity conditions; one baselin...

A new bargaining set based on notions of both internal and external stability is developed in the context of endogenous coalition formation. It allows to make an explicit distinction between withingroup and outside-group deviation options. This type of distinction is not present in current bargaining sets. For the class of monotonic proper simple games, the outcomes in the bargaining set are ch...

This paper investigates whether information about generosity or fairness can be useful in reducing dispute costs and enhancing bargaining efficiency. Subjects were first screened using a dictator game, with the allocations chosen used to separate participants into two types. Mutually anonymous pairs of subjects then bargained, with a dispute cost structure imposed. Sorting with identification r...

Experimental studies of bargaining generally impose time preferences' on subjects, in the sense that in case of disagreement, the experimenter reduces the size of the surplus bargained over by imposing exogenously some monetary cost. Contrary to this practice, in this study time preferences are first elicited in a preliminary phase, and then bargaining begins. I show that although subjects are ...

The paper investigates the reactive bargaining set, a solution con­ cept for TU-games introduced by Granot (1994), in economies in which agents exchange indivisible goods and one perfectly divisible good (money). Under the assumptions that the preferences of the agents are quasi-linear and the initial endowments satisfy the Total Abundance condition, which is an abundance con­ dition on the mon...

The Choice of the Agenda in Labor Negotiations: Efficiency and Behavioral Considerations The labor economics literature has shown that the “efficient bargaining” model, in which wage and employment are negotiated simultaneously, is less frequently used on unionized markets than the less efficient “right-to-manage” model, in which wage is determined via bargaining and employment determined subse...

We study bargaining games between suppliers and manufacturers in a network context. Agents wish to enter into contracts in order to generate surplus which then must be divided among the participants. Potential contracts and their surplus are represented by weighted edges in our bipartite network. Each agent in the market is additionally limited by a capacity representing the number of contracts...

We study the equilibrium outcomes of two-person bargaining problems in which each party has “outside option” known only to himself. We examin two game forms, a sequential-move game and a simulteneous-move game. In this context we discuss the failure to reach agreements and the loss of efficiency thereof. Invoking the analogy between the sequentialmove game and the familiar ultimatum game we als...

In this research, we examine the influence of beliefs about fairness on bargaining behavior. Using a repeated ultimatum game, we examine bargaining contexts in Japan and the United States in which buyers’ or sellers’ fair beliefs are either in alignment with or in conflict with their own self-interest. We suggest that understanding the relationship between fair beliefs and self-interest is cent...

This paper reviews a recent literature that extends the Rubinstein/Stahl bargaining model to the case of contract bargaining. Theoretical issues such as the appropriate game form, existence and uniqueness of equilibria are discussed. The paper finishes with a brief overview of some applications of the framework.