An Experiment on Demand Commitment Bargaining

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.