TY - JOUR
T1 - Bargaining over a jointly produced pie
T2 - The effect of the production function on bargaining outcomes
AU - Takeuchi, Ai
AU - Veszteg, Róbert F.
AU - Kamijo, Yoshio
AU - Funaki, Yukihiko
N1 - Funding Information:
Financial support from the JSPS Core-to-Core Program, and the JSPS Grants-in-Aid for Scientific Research (KAKENHI) 20K01553 and 17H02503 have made our experimental sessions possible. We have polished and improved the manuscript with the help of the constructive criticism received from two anonymous referees and the editor, Gary Charness.
Publisher Copyright:
© 2022 Elsevier Inc.
PY - 2022/7
Y1 - 2022/7
N2 - Using experimental data, we show that the characteristics of the joint production process have a notable impact on the distribution of bargaining agreements. The setting in which the jointly produced surplus is expressed to be proportional to individual inputs leads to significantly more proportional bargaining agreements. This is in contrast to the setting in which the surplus is expressed as an additive constant, where bargaining agreements are more in line with the Nash bargaining solution.
AB - Using experimental data, we show that the characteristics of the joint production process have a notable impact on the distribution of bargaining agreements. The setting in which the jointly produced surplus is expressed to be proportional to individual inputs leads to significantly more proportional bargaining agreements. This is in contrast to the setting in which the surplus is expressed as an additive constant, where bargaining agreements are more in line with the Nash bargaining solution.
KW - Earned wealth
KW - Laboratory experiment
KW - Nash bargaining solution
KW - Production function
KW - Proportional solution
KW - Unstructured bargaining
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U2 - 10.1016/j.geb.2022.03.016
DO - 10.1016/j.geb.2022.03.016
M3 - Article
AN - SCOPUS:85129747544
SN - 0899-8256
VL - 134
SP - 169
EP - 198
JO - Games and Economic Behavior
JF - Games and Economic Behavior
ER -