The Attraction and Compromise Effects in Bargaining: Experimental Evidence

Fabio Galeotti (1) , Maria Montero (2) , Anders Poulsen (3)

1 GATE Lyon Saint-Étienne - Groupe d'Analyse et de Théorie Economique Lyon - Saint-Etienne
2 UON - University of Nottingham, UK
3 UEA - University of East Anglia [Norwich]

The Attraction Effect and Compromise Effect (AE and CE) were introduced for individual choice situations. We define and experimentally investigate the AE and CE for bargaining situations. Our data suggest that the AE and CE are significant in bargaining, when certain conditions, related to focal equilibrium selection criteria based on payoff equality, efficiency, and symmetry, are met.

Mots clés: Bargaining; attraction effect; compromise effect; focality; equality; efficiency; symmetry

Domaines: Economies et finances

Fabio Galeotti, Maria Montero, Anders Poulsen. The Attraction and Compromise Effects in Bargaining: Experimental Evidence. 2020. ⟨halshs-02466032⟩