AN EXPERIMENTAL INVESTIGATION OF 2-PERSON BARGAINING

Three computer-assisted experiments are designed to test some game-theoretic problems in 2-person bargaining. The role and the type of information is examined in situations where players bargain over chips, and in others where they negotiate over how to divide lottery tickets with chips as prizes. The information about the monetary values is manipulated, and its effect on the strategic behavior of the players is studied. The cause and the control of disagreement are discussed in the general context of conflict of interest.;The computer programs that were developed for this purpose enabled the players to exchange messages and proposals via terminals. All transactions were automatically recorded.