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Vacuous Information Affects Bargaining

Author

Listed:
  • Christian Korth

    (University of Bayreuth)

  • J. Philipp Reiß

    (Karlsruhe Institute of Technology (KIT))

Abstract

We introduce vacuous information into buyer-seller ultimatum exchanges and provide evidence that it can affect bargaining outcomes. Notably bargaining behavior is affected asymmetrically in a way that leads allocative efficiency to respond negatively. Our results are consistent with self-serving bias that commands players to interpret vacuous information in a self-serving way.

Suggested Citation

  • Christian Korth & J. Philipp Reiß, 2014. "Vacuous Information Affects Bargaining," Group Decision and Negotiation, Springer, vol. 23(4), pages 921-936, July.
    • Handle: RePEc:spr:grdene:v:23:y:2014:i:4:d:10.1007_s10726-013-9361-7
    DOI: 10.1007/s10726-013-9361-7
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    2. Kimbrough, E.O. & Vostroknutov, A., 2012. "Using rules to screen for cooperative types: rule-following and restraint in common pool resource systems," Research Memorandum 054, Maastricht University, Maastricht Research School of Economics of Technology and Organization (METEOR).

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    More about this item

    Keywords

    Ultimatum game; Vacuous information; Experiment; Bargaining; Self-serving bias; Anchoring;
    All these keywords.

    JEL classification:

    • C90 - Mathematical and Quantitative Methods - - Design of Experiments - - - General
    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory

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