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Are groups more rational, more competitive or more prosocial bargainers?

Author

Listed:
  • Ulrike Vollstädt

    (Jena Graduate School "Human Behaviour in Social and Economic Change", University of Jena)

  • Robert Böhm

    (Center for Empirical Research in Economics and Behavioral Scienes (CEREB), University of Erfurt)

Abstract

In reality, it is often groups rather than individuals that make decisions. In previous experiments, groups have frequently been shown to act differently from individuals in several ways. It has been claimed that inter-group interactions may be (1) more competitive, (2) more rational, or (3) more prosocial than inter-individual interactions. While some of these observed differences may be due to differences in the experimental designs, it is still not clear which of the three motivations is prevailing as they have often been behaviorally confounded in previous experiments. We use Rubinstein's alternating offers bargaining game to compare inter-individual with inter-group behavior since it allows separating the predictions of competitive, rational and prosocial behavior. We find that groups are, on average, more rational bargainers than individuals.

Suggested Citation

  • Ulrike Vollstädt & Robert Böhm, 2012. "Are groups more rational, more competitive or more prosocial bargainers?," Jena Economics Research Papers 2012-048, Friedrich-Schiller-University Jena.
    • Handle: RePEc:jrp:jrpwrp:2012-048
    as

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    File URL: https://oweb.b67.uni-jena.de/Papers/jerp2012/wp_2012_048.pdf
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    alternating offers bargaining experiment; inter-group behavior; inter-individual behavior;
    All these keywords.

    JEL classification:

    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
    • D70 - Microeconomics - - Analysis of Collective Decision-Making - - - General

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