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The determinants of multilateral bargaining: a comprehensive analysis of Baron and Ferejohn majoritarian bargaining experiments

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  • Andrzej Baranski

    (NYUAD)

  • Rebecca Morton

    (NYUAD
    NYU)

Abstract

We analyze the data sets of all majoritarian Baron and Ferejohn (Am Political Sci Rev 83(4):1181–1206, 1989) experiments through 2018. By exploiting the variation of the experimental parameters, we are able to identify how group size, discount factor (cost of agreement delay), voting weights, and communication affect bargaining outcomes and dynamics. The outcomes are qualitatively in line with the stationary subgame perfect equilibrium, i.e., minimum winning coalitions are modal; proposers demand larger shares than non-proposers; and most agreements are reached without delay. Experience and communication between players move outcomes closer to the equilibrium. However, bargaining dynamics are not stationary. Behavior following a disagreement is history-dependent in the form of retaliation towards failed proposers and their supporters, which, if rationally expected, may deter proposers from demanding high shares.

Suggested Citation

  • Andrzej Baranski & Rebecca Morton, 2022. "The determinants of multilateral bargaining: a comprehensive analysis of Baron and Ferejohn majoritarian bargaining experiments," Experimental Economics, Springer;Economic Science Association, vol. 25(4), pages 1079-1108, September.
    • Handle: RePEc:kap:expeco:v:25:y:2022:i:4:d:10.1007_s10683-021-09734-7
    DOI: 10.1007/s10683-021-09734-7
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    Cited by:

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    2. Andrzej Baranski & Ernesto Reuben, 2023. "Competing for Proposal Rights: Theory and Experimental Evidence," Working Papers 20220085, New York University Abu Dhabi, Department of Social Science, revised Mar 2023.
    3. Vincent Mak & Rami Zwick, 2024. "Fairness and Transparency in One-to-Many Bargaining with Complementarity: An Experimental Study," Games, MDPI, vol. 15(4), pages 1-29, June.
    4. Lina Lozano & Arno Riedl & Christina Rott, 2024. "The Impact of the Menstrual Cycle on Bargaining Behavior," Tinbergen Institute Discussion Papers 24-009/I, Tinbergen Institute.
    5. Anita Gantner & Regine Oexl, 2023. "Respecting entitlements in legislative bargaining: A matter of preference or necessity?," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 56(2), pages 490-519, May.
    6. Kim, Duk Gyoo, 2023. "“One Bite at the apple”: Legislative bargaining without replacement," Journal of Economic Psychology, Elsevier, vol. 95(C).
    7. Regine Oexl & Anita Gantner, 2021. "Respecting Entitlements in Legislative Bargaining - A Matter of Preference or Necessity?," Working Papers 2021-25, Faculty of Economics and Statistics, Universität Innsbruck.
    8. John Duffy & SunTak Kim, 2024. "Public good bargaining under mandatory and discretionary rules: experimental evidence," Experimental Economics, Springer;Economic Science Association, vol. 27(1), pages 175-214, March.
    9. Baranski, Andrzej & Haas, Nicholas, 2023. "The timing of communication and retaliation in bargaining: An experimental study," Journal of Economic Psychology, Elsevier, vol. 96(C).
    10. Merkel, Anna & Vanberg, Christoph, 2023. "Multilateral bargaining with subjective claims under majority vs. unanimity rule: An experiment," Journal of Economic Psychology, Elsevier, vol. 95(C).
    11. Sauermann, Jan & Schwaninger, Manuel & Kittel, Bernhard, 2022. "Making and breaking coalitions: Strategic sophistication and prosociality in majority decisions," European Journal of Political Economy, Elsevier, vol. 71(C).

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