Applied Micro Workshop – Sebastian Schweighofer-Kodritsch, “Bargaining and Time Preferences: An Experimental Study”
Jeongbin Kim, Wooyoung Lim, and Sebastian Schweighofer-Kodritsch: “Bargaining and Time Preferences: An Experimental Study” We provide the first experimental test of the Rubinstein (1982) model of bargaining, where the cost of disagreement is payoff delay. Our design has all bargaining take place within a single session, but exogenously and transparently varies the payoff delay per round of disagreement at the individual level (week/month, with/without front-end delay), and conveniently implements delayed payments via a popular mobile payment service. We formally derive the basic theoretical predictions under exponential discounting (immediate agreement, proposer advantage, effective delay advantage, and front-end delay neutrality) and the differential predictions under present bias (front-end delay advantage), and we purposefully design our treatments to test these. In contrast to prior experiments that did not implement actual payoff delay, overall, we obtain strong behavioral support for the theory when accounting for present bias.
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Jan 14, 2020 from 16:00 to 17:30 |
| Where | briq, Seminar Room 9/1.1, Schaumburg-Lippe-Straße 9 |
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