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Bargaining in a Video Experiment : Determinants of Boundedly Rational Behavior : LECTURE NOTES IN ECONOMICS AND MATHEMATICAL SYSTEMS - Heike Hennig-Schmidt

Bargaining in a Video Experiment : Determinants of Boundedly Rational Behavior

LECTURE NOTES IN ECONOMICS AND MATHEMATICAL SYSTEMS

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Bilateral bargaining situations are of great importance in reality. Traditional microeconomics, however, make cognitive and motivational assumptions of subjects' full rationality that are revealed as being unrealistic by a growing number of experimental investigations. The present book adds an important contribution to the understanding of principles of boundedly rational behavior by directly observing groups of subjects in a decision situation and videotaping their discussions. A very important result of the book is that the behavior of subjects is guided by aspirations regarding the final outcome. The levels of aspirations are influenced by prominence and different forms of the equity principle resulting in several fairness norms as to the allocation of the amount of money to be divided. Another important feature of the book stems from the analysis of break off discussions and enables a motivational explanation of the emergence of breakdowns in bargaining.

Acknowledgementsp. VII
Introductionp. 1
Description of the Experimentp. 5
Experimental Designp. 5
Organizational Featuresp. 8
Data and Evaluationp. 11
Experimental Setupp. 11
Spontaneous versus Strategic Behaviorp. 12
Observation and Group Effectp. 14
Number of Sessions and Statistical Analysisp. 15
Evaluationp. 15
Datap. 16
Data Analysisp. 18
Determinants of Boundedly Rational Behaviorp. 21
Aspiration Levelsp. 21
Prominencep. 22
The Equity Principle and Fairnessp. 23
The Equity Principlep. 23
Fairnessp. 26
Motivations, Emotions, and Social Normsp. 28
Analysis of Payoffs and Proposalsp. 31
Bargaining Models and Related Experimentsp. 31
Payoffsp. 36
Inexperienced Groupsp. 38
Experienced Groupsp. 39
Group Effectsp. 42
Proposalsp. 44
Inexperienced Groupsp. 44
Experienced Groupsp. 45
Prominence Level of Proposalsp. 46
Threatsp. 50
Are Threats Successful?p. 52
Does Threatening Pay in Monetary Terms?p. 53
Do Threats Reduce the Bargaining Time?p. 54
Strategic Ideasp. 55
Constant Demandp. 56
"Jumping" between a Minimal Demand and a "Punishment Value"p. 57
Concessions to Reach an Agreementp. 58
Proposal of Equal Split by an S-groupp. 58
Combinations of Behavior in 5.5.2 and 5.5.3p. 58
Conclusionp. 59
Equity and Prominence in Aspiration Levels and Proposalsp. 61
The Equity Principle and Fairnessp. 61
Prominencep. 66
Aspiration Levelsp. 66
Formation and Adaptation of Aspiration Levelsp. 67
Finding the First Aspiration Levelp. 67
Adaptation of Aspiration Levelsp. 73
Test of the Predictive Success of the Principles Guiding Aspiration Level Formation and Adaptationp. 78
Proposalsp. 81
First Demands and Adjustments of Proposalsp. 83
First Demands/Offersp. 83
Adjustments of Proposalsp. 83
The Negotiation Agreement Area - Comparison of Resultsp. 89
Other Aspiration Level Based Approaches Explaining Outcomes of Bargainingp. 94
Conclusionp. 97
Break Offsp. 99
Correlates of Break Off Discussionsp. 102
Monetary and Nonmonetary Motivesp. 107
Motivationsp. 109
Economic Efficiencyp. 109
Powerp. 112
Reciprocity, a Social Norm with Two Facesp. 115
Economic Literature on Reciprocityp. 116
Reciprocity in Break Off Discussionsp. 119
Emotionsp. 122
Emotions as Determinants for Primarily Non-Payoff-Oriented Break Off Discussionsp. 123
Economic Literature Taking Account of Emotionsp. 125
Motivational Explanation of Potential and Actual Break Offsp. 126
Conclusionp. 129
Conclusive Remarks: How Do Business People Decide?p. 131
Appendicesp. 137
Introduction of Experimental Subjectsp. 137
Negotiation Processesp. 141
Negotiation Processes of the Kuon-Uhlich-Experimentp. 153
Allocationsp. 159
Formation and Adaptation of Aspiration Levelsp. 163
Break Off Discussionsp. 185
Questionnaire for Business Peoplep. 207
Referencesp. 209
Table of Contents provided by Publisher. All Rights Reserved.

ISBN: 9783540654155
ISBN-10: 3540654151
Series: LECTURE NOTES IN ECONOMICS AND MATHEMATICAL SYSTEMS
Audience: General
Format: Paperback
Language: English
Number Of Pages: 221
Publisher: Springer-Verlag Berlin and Heidelberg Gmbh & Co. Kg
Country of Publication: DE
Dimensions (cm): 24.13 x 15.88  x 1.91
Weight (kg): 0.34