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Collaborative environmental negotiation with private non-verifiable information: an experimental test

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  • Christopher Bruce
  • Jeremy Clark

Abstract

In many cases, governments invite interest groups to use collaborative negotiation to resolve environmental conflicts. A characteristic of these negotiations is that the parties lack ex ante information about their opponents' ordinal and cardinal preferences. We argue in this paper that most laboratory experiments that have investigated the outcomes of collaborative negotiation have not taken this information asymmetry into account fully. In this paper, we introduce private information into an experimental protocol that we originally employed to investigate collaborative negotiation with full information. We hypothesise that making information private will have only a limited effect on subjects' abilities to reach Pareto-efficient bargains or on the effect that entitlements will have on the outcome; but that considerations of equity will become less important. We find evidence to support these hypotheses, though the effect of entitlements seems more robust under private than full information.

Suggested Citation

  • Christopher Bruce & Jeremy Clark, 2015. "Collaborative environmental negotiation with private non-verifiable information: an experimental test," Journal of Environmental Economics and Policy, Taylor & Francis Journals, vol. 4(1), pages 82-104, March.
    • Handle: RePEc:taf:teepxx:v:4:y:2015:i:1:p:82-104
    DOI: 10.1080/21606544.2014.972990
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    References listed on IDEAS

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    1. Beierle, Thomas, 2000. "The Quality of Stakeholder-Based Decisions: Lessons from the Case Study Record," RFF Working Paper Series dp-00-56, Resources for the Future.
    2. Beierle, Thomas C., 2000. "The Quality of Stakeholder-Based Decisions: Lessons from the Case Study Record," Discussion Papers 10686, Resources for the Future.
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