Strategic Uncertainty Aversion in Bargaining - Experimental Evidence

Publikation: Wissenschaftliche FachzeitschriftOriginalbeitrag in FachzeitschriftBegutachtung

Abstract

In a series of four experiments I demonstrate the existence of significant aversion to basically non-existent strategic uncertainty in very simple bargaining games. This aversion goes far beyond ordinary risk or ambiguity aversion. Specifically, although almost nobody expects or chooses the rejection of an offered equal split in a bargaining game, participants behave as if there would be a considerably large rejection rate for equal splits. This behavior is robust across experimental designs and subject pools, can lead to inefficiencies in markets, and is incompatible with consistency of strategies and rational beliefs.
OriginalspracheEnglisch
Aufsatznummer102604
FachzeitschriftJournal of Economic Psychology
DOIs
PublikationsstatusElektronische Veröffentlichung vor Drucklegung - Jan. 2023

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