Location: 368A Heady Hall
Description: Shirui Wang
"An Experimental Study of an Alternating Bargaining Game with Uncertainties"
Abstract: We propose to model the bargaining risks as the probability of the bargaining power shift in a two-stage game, and show the existence of multiple equilibria if fairness is taken into account. The experiment shows that both proposer offers and responder demands slightly increase as the bargaining power shifts to the responders, with the magnitudes for responders being twice as large. The fair offer dominates regardless of the bargaining power shift, which is confirmed by simulation.
Contact Person: Otavio Bartalotti