[go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/p/wvu/wpaper/15-22.html
   My bibliography  Save this paper

Role of Personality Style on Bargaining Outcomes

Author

Listed:
  • Bryan C. McCannon

    (West Virginia University, Department of Economics)

  • John B. Stevens

    (Saint Bonaventure University)

Abstract
Purpose: The motivation for the research is to identify whether personality traits can help explain the outcomes that arise in bargaining outcomes. Design: Experiments with subjects playing the alternating-offers bargaining game are considered. Both full information and asymmetric information treatments are considered. Subjects also complete standardized Myers-Briggs Type Indicator assessments. Findings: Personality type measurements are shown to help explain the opening offers, rejections, and resulting wealth in the negotiations. It is shown that interactions between the personality dimensions are important and that the interaction between personality and information play a key role in bargaining outcomes. Research limitations/implications – The research utilizes laboratory experiments to generate data. This expands our understanding of individual level behaviour, but suffers from the limitation of not replicating realistic bargaining situations. Practical Implications: The work should serve as a guide to organizations to identify traits of effective negotiators. Social Implications: Bargaining is a central economic activity. Being able to identify the root of differences in outcomes from negotiations should be able to inform institutional design issues. Originality/Value: Little work has been done connecting the rich literature in social psychology and management on personality to economic outcomes. The research on bargaining neglects to incorporate individual-level traits into the process. This research begins to bridge this gap and informs both bargaining theory as well as emphasizes the importance of personality in application.

Suggested Citation

  • Bryan C. McCannon & John B. Stevens, 2015. "Role of Personality Style on Bargaining Outcomes," Working Papers 15-22, Department of Economics, West Virginia University.
    • Handle: RePEc:wvu:wpaper:15-22
    as

    Download full text from publisher

    File URL: https://researchrepository.wvu.edu/cgi/viewcontent.cgi?article=1152&context=econ_working-papers
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Rubinstein, Ariel, 1982. "Perfect Equilibrium in a Bargaining Model," Econometrica, Econometric Society, vol. 50(1), pages 97-109, January.
    2. John C. Harsanyi & Reinhard Selten, 1988. "A General Theory of Equilibrium Selection in Games," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262582384, April.
    3. Judith Offerhaus, 2013. "The Type to Train?: Impacts of Personality Characteristics on Further Training Participation," SOEPpapers on Multidisciplinary Panel Data Research 531, DIW Berlin, The German Socio-Economic Panel (SOEP).
    4. Timothy Cason & Stanley Reynolds, 2005. "Bounded rationality in laboratory bargaining with asymmetric information," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 25(3), pages 553-574, April.
    5. Weg, Eythan & Zwick, Rami, 1991. "On the rebustness of perfect equilibrium in fixed cost sequential bargaining under an isomorphic transformation," Economics Letters, Elsevier, vol. 36(1), pages 21-24, May.
    6. Young, H Peyton, 1993. "The Evolution of Conventions," Econometrica, Econometric Society, vol. 61(1), pages 57-84, January.
    7. Cary Deck & Jungmin Lee & Javier Reyes & Chris Rosen, 2012. "Risk-Taking Behavior: An Experimental Analysis of Individuals and Dyads," Southern Economic Journal, John Wiley & Sons, vol. 79(2), pages 277-299, October.
    8. Romina Boarini & Jean-François Laslier & Stéphane Robin, 2009. "Interpersonal comparisons of utility in bargaining: evidence from a transcontinental ultimatum game," Theory and Decision, Springer, vol. 67(4), pages 341-373, October.
    9. Swope, Kurtis J. & Cadigan, John & Schmitt, Pamela M. & Shupp, Robert, 2008. "Personality preferences in laboratory economics experiments," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 37(3), pages 998-1009, June.
    10. Zwick, Rami & Rapoport, Amnon & Weg, Eythan, 2000. "Invariance failure under subgame perfectness in sequential bargaining," Journal of Economic Psychology, Elsevier, vol. 21(5), pages 517-544, October.
    11. Julia Muller & Christiane Schwieren, 2012. "What can the Big Five Personality Factors contribute to explain Small-Scale Economic Behavior?," Tinbergen Institute Discussion Papers 12-028/1, Tinbergen Institute.
    12. Kandori, Michihiro & Mailath, George J & Rob, Rafael, 1993. "Learning, Mutation, and Long Run Equilibria in Games," Econometrica, Econometric Society, vol. 61(1), pages 29-56, January.
    13. Silvia Mendolia & Ian Walker, 2014. "The Effect Of Noncognitive Traits On Health Behaviours In Adolescence," Health Economics, John Wiley & Sons, Ltd., vol. 23(9), pages 1146-1158, September.
    14. M Perugini & J H W Tan & D J Zizzo, 2010. "Which is the More Predictable Gender? Public Good Contribution and Personality," Economic Issues Journal Articles, Economic Issues, vol. 15(1), pages 83-110, March.
    15. Boone, Christophe & De Brabander, Bert & van Witteloostuijn, Arjen, 1999. "The impact of personality on behavior in five Prisoner's Dilemma games," Journal of Economic Psychology, Elsevier, vol. 20(3), pages 343-377, June.
    16. Scharlemann, Jorn P. W. & Eckel, Catherine C. & Kacelnik, Alex & Wilson, Rick K., 2001. "The value of a smile: Game theory with a human face," Journal of Economic Psychology, Elsevier, vol. 22(5), pages 617-640, October.
    17. Goeree, Jacob K. & Holt, Charles A., 2000. "Asymmetric inequality aversion and noisy behavior in alternating-offer bargaining games," European Economic Review, Elsevier, vol. 44(4-6), pages 1079-1089, May.
    18. Ana Paula Martins, 2007. "Ideals in sequential bargaining structures," International Journal of Social Economics, Emerald Group Publishing Limited, vol. 34(11), pages 828-882, October.
    19. Schmitt, Pamela & Shupp, Robert & Swope, Kurtis & Mayer, Justin, 2008. "Pre-commitment and personality: Behavioral explanations in ultimatum games," Journal of Economic Behavior & Organization, Elsevier, vol. 66(3-4), pages 597-605, June.
    20. Gunnthorsdottir, Anna & McCabe, Kevin & Smith, Vernon, 2002. "Using the Machiavellianism instrument to predict trustworthiness in a bargaining game," Journal of Economic Psychology, Elsevier, vol. 23(1), pages 49-66, February.
    21. Ben-Ner, Avner & Kong, Fanmin & Putterman, Louis, 2004. "Share and share alike? Gender-pairing, personality, and cognitive ability as determinants of giving," Journal of Economic Psychology, Elsevier, vol. 25(5), pages 581-589, October.
    22. Rami Zwick & Xiao-Ping Chen, 1999. "What Price Fairness? A Bargaining Study," Management Science, INFORMS, vol. 45(6), pages 804-823, June.
    23. Weg, Eythan & Rapoport, Amnon & Felsenthal, Dan S., 1990. "Two-person bargaining behavior in fixed discounting factors games with infinite horizon," Games and Economic Behavior, Elsevier, vol. 2(1), pages 76-95, March.
    24. Bryan McCannon, 2011. "Coordination between a sophisticated and fictitious player," Journal of Economics, Springer, vol. 102(3), pages 263-273, April.
    25. Gerrit Mueller & Erik Plug, 2006. "Estimating the Effect of Personality on Male and Female Earnings," ILR Review, Cornell University, ILR School, vol. 60(1), pages 3-22, October.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Tolnai, Lilla, 2021. "The Power of Personality Traits in Allocation Decision-Making: A Secondary Analysis of a Laboratory Experiment," Junior Management Science (JUMS), Junior Management Science e. V., vol. 6(2), pages 299-323.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Julia Muller & Christiane Schwieren, 2012. "What can the Big Five Personality Factors contribute to explain Small-Scale Economic Behavior?," Tinbergen Institute Discussion Papers 12-028/1, Tinbergen Institute.
    2. Müller, Julia & Schwieren, Christiane, 2017. "Using Personality Questionnaires in Experiments -- Limits and Potentials," MPRA Paper 78132, University Library of Munich, Germany.
    3. Cary Deck & Jungmin Lee & Javier Reyes & Chris Rosen, 2012. "Risk‐Taking Behavior: An Experimental Analysis of Individuals and Dyads," Southern Economic Journal, John Wiley & Sons, vol. 79(2), pages 277-299, October.
    4. van Damme, E.E.C., 1995. "Game theory : The next stage," Other publications TiSEM 7779b0f9-bef5-45c7-ae6b-7, Tilburg University, School of Economics and Management.
    5. Shota Fujishima, 2015. "The emergence of cooperation through leadership," International Journal of Game Theory, Springer;Game Theory Society, vol. 44(1), pages 17-36, February.
    6. Thijssen, J.J.J., 2003. "Investment under uncertainty, market evolution and coalition spillovers in a game theoretic perspective," Other publications TiSEM 672073a6-492e-4621-8d4a-0, Tilburg University, School of Economics and Management.
    7. Volk, Stefan & Thöni, Christian & Ruigrok, Winfried, 2012. "Temporal stability and psychological foundations of cooperation preferences," Journal of Economic Behavior & Organization, Elsevier, vol. 81(2), pages 664-676.
    8. Binmore, Ken & Samuelson, Larry & Young, Peyton, 2003. "Equilibrium selection in bargaining models," Games and Economic Behavior, Elsevier, vol. 45(2), pages 296-328, November.
    9. Wallace, Chris & Young, H. Peyton, 2015. "Stochastic Evolutionary Game Dynamics," Handbook of Game Theory with Economic Applications,, Elsevier.
    10. He, Simin & Wu, Jiabin, 2020. "Compromise and coordination: An experimental study," Games and Economic Behavior, Elsevier, vol. 119(C), pages 216-233.
    11. Maarten C.W. Janssen, 1997. "Focal Points," Tinbergen Institute Discussion Papers 97-091/1, Tinbergen Institute.
    12. Michael Kosfeld, 2002. "Stochastic strategy adjustment in coordination games," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 20(2), pages 321-339.
    13. Sanjeev Goyal & Fernando Vega-Redondo, 2000. "Learning, Network Formation and Coordination," Econometric Society World Congress 2000 Contributed Papers 0113, Econometric Society.
    14. Jun Honda, 2015. "Games with the Total Bandwagon Property," Department of Economics Working Papers wuwp197, Vienna University of Economics and Business, Department of Economics.
    15. , & , & ,, 2008. "Monotone methods for equilibrium selection under perfect foresight dynamics," Theoretical Economics, Econometric Society, vol. 3(2), June.
    16. Norman, Thomas W.L., 2009. "Rapid evolution under inertia," Games and Economic Behavior, Elsevier, vol. 66(2), pages 865-879, July.
    17. Péter Bayer & Ani Guerdjikova, 2020. "Optimism leads to optimality: Ambiguity in network formation," Working Papers hal-03005107, HAL.
    18. Kosfeld, Michael, 2002. "Why shops close again: An evolutionary perspective on the deregulation of shopping hours," European Economic Review, Elsevier, vol. 46(1), pages 51-72, January.
    19. Ennio Bilancini & Leonardo Boncinelli, 2020. "The evolution of conventions under condition-dependent mistakes," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 69(2), pages 497-521, March.
    20. Oyama, Daisuke & Tercieux, Olivier, 2009. "Iterated potential and robustness of equilibria," Journal of Economic Theory, Elsevier, vol. 144(4), pages 1726-1769, July.

    More about this item

    Keywords

    personality; bargaining; bargaining outcomes;
    All these keywords.

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wvu:wpaper:15-22. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Feng Yao (email available below). General contact details of provider: https://edirc.repec.org/data/dewvuus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.