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An Experiment on Demand Commitment Bargaining

Author

Listed:
  • Michela Chessa
  • Nobuyuki Hanaki
  • Aymeric Lardon
  • Takashi Yamada
Abstract
In this experiment, we compare three implementations of the Winter demand commitment bargaining mechanism: a one-period implementation, a two-period implementation with low delay costs, and a two-period implementation with high delay costs. Despite the different theoretical predictions, our results show that the three different implementations result in similar outcomes in all our investigation domains: namely, coalition formation, alignment with the Shapley value prediction, and satisfaction of the axioms. Our results suggest that a lighter bargaining implementation with only one period is often sufficient in providing allocations that sustain the Shapley value as an appropriate cooperative solution concept, while saving unnecessary time and resource costs.

Suggested Citation

  • Michela Chessa & Nobuyuki Hanaki & Aymeric Lardon & Takashi Yamada, 2021. "An Experiment on Demand Commitment Bargaining," ISER Discussion Paper 1152r, Institute of Social and Economic Research, Osaka University, revised Jun 2022.
    • Handle: RePEc:dpr:wpaper:1152r
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    References listed on IDEAS

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    Cited by:

    1. Chessa, Michela & Hanaki, Nobuyuki & Lardon, Aymeric & Yamada, Takashi, 2022. "The effect of choosing a proposer through a bidding procedure in implementing the Shapley value," Journal of Economic Psychology, Elsevier, vol. 93(C).
    2. Chessa, Michela & Hanaki, Nobuyuki & Lardon, Aymeric & Yamada, Takashi, 2023. "An experiment on the Nash program: A comparison of two strategic mechanisms implementing the Shapley value," Games and Economic Behavior, Elsevier, vol. 141(C), pages 88-104.

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    More about this item

    JEL classification:

    • C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games
    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • C90 - Mathematical and Quantitative Methods - - Design of Experiments - - - General
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design

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