The Impact of Previous Action on Bargaining—An Experiment on the Emergence of Preferences for Fairness Norms
The communication of participants to identify an acceptable bargaining outcome in the Nash bargaining game is all about fairness norms. Participants introduce fairness norms which yield a better outcome for themselves in order to convince the other participant of their bargaining proposal. Typically...
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doaj-0d0747b203404ec294391c1c9b2c9a442020-11-24T22:52:54ZengMDPI AGGames2073-43362017-08-01833410.3390/g8030034g8030034The Impact of Previous Action on Bargaining—An Experiment on the Emergence of Preferences for Fairness NormsThomas Neumann0Stephan Schosser1Bodo Vogt2Otto-von-Guericke University of Magdeburg, 39106 Magdeburg, GermanyOtto-von-Guericke University of Magdeburg, 39106 Magdeburg, GermanyOtto-von-Guericke University of Magdeburg, 39106 Magdeburg, GermanyThe communication of participants to identify an acceptable bargaining outcome in the Nash bargaining game is all about fairness norms. Participants introduce fairness norms which yield a better outcome for themselves in order to convince the other participant of their bargaining proposal. Typically, these fairness norms are in line with theoretical predictions, which support a wide variety of different but fair outcomes the participants can choose from. In this experiment, we play two treatments of the Nash bargaining game: in one treatment, the participants play a dictator game prior to bargaining, and in the other treatment they do not. We find that participants who have not played the dictator game intensively discuss the outcome of the game and come to solutions closer to the equal split of the pie the longer they chat. This effect vanishes as soon as the participants have previous experience from a dictator game: instead of chatting, they establish the fairness norm introduced in the dictator game. Remarkably, if the dictator is unfair in the dictator game, he also gets a higher share of the pie in the Nash bargaining game.https://www.mdpi.com/2073-4336/8/3/34bargaining gamedictator gamenormsexperimental economics |
collection |
DOAJ |
language |
English |
format |
Article |
sources |
DOAJ |
author |
Thomas Neumann Stephan Schosser Bodo Vogt |
spellingShingle |
Thomas Neumann Stephan Schosser Bodo Vogt The Impact of Previous Action on Bargaining—An Experiment on the Emergence of Preferences for Fairness Norms Games bargaining game dictator game norms experimental economics |
author_facet |
Thomas Neumann Stephan Schosser Bodo Vogt |
author_sort |
Thomas Neumann |
title |
The Impact of Previous Action on Bargaining—An Experiment on the Emergence of Preferences for Fairness Norms |
title_short |
The Impact of Previous Action on Bargaining—An Experiment on the Emergence of Preferences for Fairness Norms |
title_full |
The Impact of Previous Action on Bargaining—An Experiment on the Emergence of Preferences for Fairness Norms |
title_fullStr |
The Impact of Previous Action on Bargaining—An Experiment on the Emergence of Preferences for Fairness Norms |
title_full_unstemmed |
The Impact of Previous Action on Bargaining—An Experiment on the Emergence of Preferences for Fairness Norms |
title_sort |
impact of previous action on bargaining—an experiment on the emergence of preferences for fairness norms |
publisher |
MDPI AG |
series |
Games |
issn |
2073-4336 |
publishDate |
2017-08-01 |
description |
The communication of participants to identify an acceptable bargaining outcome in the Nash bargaining game is all about fairness norms. Participants introduce fairness norms which yield a better outcome for themselves in order to convince the other participant of their bargaining proposal. Typically, these fairness norms are in line with theoretical predictions, which support a wide variety of different but fair outcomes the participants can choose from. In this experiment, we play two treatments of the Nash bargaining game: in one treatment, the participants play a dictator game prior to bargaining, and in the other treatment they do not. We find that participants who have not played the dictator game intensively discuss the outcome of the game and come to solutions closer to the equal split of the pie the longer they chat. This effect vanishes as soon as the participants have previous experience from a dictator game: instead of chatting, they establish the fairness norm introduced in the dictator game. Remarkably, if the dictator is unfair in the dictator game, he also gets a higher share of the pie in the Nash bargaining game. |
topic |
bargaining game dictator game norms experimental economics |
url |
https://www.mdpi.com/2073-4336/8/3/34 |
work_keys_str_mv |
AT thomasneumann theimpactofpreviousactiononbargaininganexperimentontheemergenceofpreferencesforfairnessnorms AT stephanschosser theimpactofpreviousactiononbargaininganexperimentontheemergenceofpreferencesforfairnessnorms AT bodovogt theimpactofpreviousactiononbargaininganexperimentontheemergenceofpreferencesforfairnessnorms AT thomasneumann impactofpreviousactiononbargaininganexperimentontheemergenceofpreferencesforfairnessnorms AT stephanschosser impactofpreviousactiononbargaininganexperimentontheemergenceofpreferencesforfairnessnorms AT bodovogt impactofpreviousactiononbargaininganexperimentontheemergenceofpreferencesforfairnessnorms |
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