Bargaining and the Role of Negotiators’ Competitiveness

cege Discussion Papers, No 341, 2018

34 Pages Posted: 12 Mar 2018

See all articles by Claudia Keser

Claudia Keser

University of Goettingen (Göttingen)

Stephan Müller

University of Goettingen (Göttingen)

Emmanuel Peterle

Université de Rennes 1

Holger Andreas Rau

University of Goettingen (Göttingen)

Date Written: March 8, 2018

Abstract

This paper experimentally tests the relation between subjects’ competitiveness and bargaining behavior. Bargaining is investigated in a demand-ultimatum game, where the responder can request a share of the pie from the proposer. The results show that highly competitive proposers earn less, since they make lower offers, which are more often rejected. Similarly, highly competitive responders achieve lower payoffs, since they request excessive amounts which induces lower proposals. These findings establish a link between competitiveness and bargaining as suggested by social and evolutionary psychology. Thus, we identify one driver of the empirical heterogeneity of bargaining behavior and outcomes. From a management perspective our findings highlight that giving thought to employees’ competitiveness before delegating them to participate in negotiations may pay off.

Keywords: Bargaining, Competitiveness, Experiment

JEL Classification: C91, M54

Suggested Citation

Keser, Claudia and Müller, Stephan and Peterle, Emmanuel and Rau, Holger Andreas, Bargaining and the Role of Negotiators’ Competitiveness (March 8, 2018). cege Discussion Papers, No 341, 2018, Available at SSRN: https://ssrn.com/abstract=3136379 or http://dx.doi.org/10.2139/ssrn.3136379

Claudia Keser (Contact Author)

University of Goettingen (Göttingen) ( email )

Platz der Göttinger Sieben 3
Göttingen, 37073
Germany

Stephan Müller

University of Goettingen (Göttingen) ( email )

Platz der Gottinger Sieben 3
Gottingen, D-37073
Germany

Emmanuel Peterle

Université de Rennes 1 ( email )

11 Rue Jean Macé
Rennes, Rennes 35700
France

Holger Andreas Rau

University of Goettingen (Göttingen) ( email )

Platz der Gottinger Sieben 3
Gottingen, D-37073
Germany

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