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Theory and Decision

, Volume 70, Issue 4, pp 529–546 | Cite as

Experiments on bilateral bargaining in markets

  • Andreas Tutic
  • Stefan Pfau
  • André Casajus
Article

Abstract

We present experimental data on a simple market game. Several solution concepts from cooperative game theory are applied to predict the observed payoff distributions. Notably, a recently introduced solution concept meant to capture the influence of outside options on the payoff distribution within groups fares better than most other solution concepts under consideration. Our results shed some light on the effects of scarcity relations on markets on bargaining outcomes within negotiating dyads.

Keywords

TU games Outside options Experiment Gloves game 

JEL Classification

C71 

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Copyright information

© Springer Science+Business Media, LLC. 2010

Authors and Affiliations

  • Andreas Tutic
    • 1
    • 2
    • 3
  • Stefan Pfau
    • 3
  • André Casajus
    • 1
    • 2
    • 4
    • 5
  1. 1.LSI Leipziger Spieltheoretisches InstitutLeipzigGermany
  2. 2.Wirtschaftswissenschaftliche FakultätUniversität LeipzigLeipzigGermany
  3. 3.Institut für SoziologieUniversität LeipzigLeipzigGermany
  4. 4.IMW Institute of Mathematical EconomicsBielefeld UniversityBielefeldGermany
  5. 5.Chair of Economics and Information SystemsHHL Leipzig Graduate School of ManagementLeipzigGermany

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