ISBN: 3540654151
TITLE: Bargaining in a Video Experiment
SUBTITLE: Determinants of Boundedly Rational Behavior
AUTHOR: Hennig-Schmidt, Heike
TOC:

Acknowledgements
1 Introduction 1
2 Description of the Experiment 5
2.1 Experimental Design 5
2.2 Organizational Features 8 
3 Data and Evaluation 11
3.1 Experimental Setup 11 
3.1.1 Spontaneous versus Strategic Behavior 12
3.1.2 Observation and Group Effect 14
3.1.3 Number of Sessions and Statistical Analysis 15
3.2 Evaluation 15
3.2.1 Data 16
3.2.2 Data Analysis 18 
4 Determinants of Boundedly Rational Behavior 21
4.1 Aspiration Levels 21
4.2 Prominence 22
4.3 The Equity Principle and Fairness 23 
4.3.1 The Equity Principle 23
4.3.2 Fairness 26
4.4 Motivations, Emotions, and Social Norms 28
5 Analysis of Payoffs and Proposals 31
5.1 Bargaining Models and Related Experiments 31
5.2 Payoffs 36
5.2.1 Inexperienced Groups 38
5.2.2 Experienced Groups 39
5.2.3 Group Effects 42
5.3 Proposals 44
5.3.1 Inexperienced Groups 44 
5.3.2 Experienced Groups 45
5.3.3 Prominence Level of Proposals 46 
5.4 Threats 50
5.4.1 Are Threats Successful? 52
5.4.2 Does Threatening Pay in Monetary Terms? 53
5.4.3 Do Threats Reduce the Bargaining Time? 54
5.5 Strategic Ideas 55
5.5.1 Constant Demand 56
5.5.2 "Jumping" between a Minimal Demand and a "Punishment Value" 57
5.5.3 Concessions to Reach an Agreement 58
5.5.4 Proposal of Equal Split by an S-group 58
5.5.5 Combinations of Behavior in 5.5.2 and 5.5.3 58
5.6 Conclusion 59
6 Equity and Prominence in Aspiration Levels and Proposals 61
6.1 The Equity Principle and Fairness 61
6.2 Prominence 66
6.3 Aspiration Levels 66 
6.3.1 Formation and Adaptation of Aspiration Levels 67
6.3.2 Finding the First Aspiration Level 67
6.3.3 Adaptation of Aspiration Levels 73
6.3.4 Test of the Predictive Success of the Principles Guiding Aspiration Level Formation and Adaptation 78 
6.4 Proposals 81
6.4.1 First Demands and Adjustments of Proposals 83
6.4.2 First Demands/Offers 83
6.4.3 Adjustments of Proposals 83
6.5 The Negotiation Agreement Area - Comparison of Results 89
6.6 Other Aspiration Level Based Approaches Explaining Outcomes of Bargaining 94
6.7 Conclusion 97
7 Break Offs 99
7.1 Correlates of Break Off Discussions 102
7.2 Monetary and Nonmonetary Motives 107
7.3 Motivations 109
7.3.1 Economic Efficiency 109
7.3.2 Power 112
7.4 Reciprocity, a Social Norm with Two Faces 115
7.4.1 Economic Literature on Reciprocity 116
7.4.2 Reciprocity in Break Off Discussions 119
7.5 Emotions 122
7.5.1 Emotions as Determinants for Primarily Non-Payoff-Oriented Break Off Discussions 123
7.5.2 Economic Literature Taking Account of Emotions 125
7.6 Motivational Explanation of Potential and Actual Break Offs 126
7.7 Conclusion 129
8 Conclusive Remarks: How Do Business People Decide? 131
Appendices 137
A Introduction of Experimental Subjects 137
B Negotiation Processes 141
C Negotiation Processes of the Kuon-Uhlich-Experiment 153
D Allocations 159
E Formation and Adaptation of Aspiration Levels 163
F Break Off Discussions 185
G Questionnaire for Business People 207
References 209
END
