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Bargaining over a jointly produced pie: The effect of the production function on bargaining outcomes

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  • Takeuchi, Ai
  • Veszteg, Róbert F.
  • Kamijo, Yoshio
  • Funaki, Yukihiko

Abstract

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.

Suggested Citation

  • Takeuchi, Ai & Veszteg, Róbert F. & Kamijo, Yoshio & Funaki, Yukihiko, 2022. "Bargaining over a jointly produced pie: The effect of the production function on bargaining outcomes," Games and Economic Behavior, Elsevier, vol. 134(C), pages 169-198.
    • Handle: RePEc:eee:gamebe:v:134:y:2022:i:c:p:169-198
    DOI: 10.1016/j.geb.2022.03.016
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    Cited by:

    1. Yoshio Kamijo & Koji Yokote, 2022. "Behavioral bargaining theory: Equality bias, risk attitude, and reference-dependent utility," Working Papers 2208, Waseda University, Faculty of Political Science and Economics.
    2. Yoshio Kamijo, 2023. "Fixation of inequality and emergence of the equal split norm: Approach from behavioral bargaining theory," Working Papers 2209, Waseda University, Faculty of Political Science and Economics, revised Jun 2023.

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