On the role of fairness and limited backward induction in sequential bargaining games

@article{Qu2015OnTR,
  title={On the role of fairness and limited backward induction in sequential bargaining games},
  author={Xiangyu Qu and Prashant Doshi},
  journal={Annals of Mathematics and Artificial Intelligence},
  year={2015},
  volume={79},
  pages={205-227}
}
  • Xiangyu Qu, P. Doshi
  • Published 1 March 2017
  • Economics
  • Annals of Mathematics and Artificial Intelligence
Experiments show that in sequential bargaining games (SℬG$\mathcal {SBG}$), subjects usually deviate from game-theoretic predictions. Previous explanations have focused on considerations of fairness in the offers, and social utility functions have been formulated to model the data. However, a recent explanation by Ho and Su (Manag. Sci. 59(2), 452–469 2013) for observed deviations from game-theoretic predictions in sequential games such as the Centipede game is that players engage in limited… 

References

SHOWING 1-10 OF 37 REFERENCES

Estimating the Influence of Fairness on Bargaining Behavior

TLDR
A model is developed that embeds a preference for fair treatment in a quantal response framework to account for noise and experience and implies that the model and techniques might ultimately be extended to estimates of the influence of fairness on field negotiations, as well as across subpopulations.

A Dynamic Level-k Model in Sequential Games

TLDR
The generalizability of the dynamic level-k model is examined by applying it to explain systematic violations of backward induction in sequential bargaining games and it is shown that the model is capable of capturing these violations in two separate bargaining experiments.

Ultimatum Bargaining for a Shrinking Cake — An Experimental Analysis —

In an ultimatum bargaining game two players have to divide a given positive amount c of money. First player 1 demands how much of the ‘cake’ c he desires for himself. Then player 2 can either accept

A Further Test of Noncooperative Bargaining Theory: Comment

A great deal of attention has recently been devoted to providing noncooperative game theory foundations to bargaining problems, (compare Ingolf Stahl, 1972, and Ariel Rubinstein, 1982). This approach

Detecting Failures of Backward Induction: Monitoring Information Search in Sequential Bargaining

TLDR
Moves of information search showed that subjects did not look at the amounts being divided in different rounds in the correct order, and for the length of time, necessary for backward induction, unless they were specifically instructed.

Behavioral Game Theory: Experiments in Strategic Interaction

Game theory, the formalized study of strategy, began in the 1940s by asking how emotionless geniuses should play games, but ignored until recently how average people with emotions and limited

An experimental study of sequential bargaining

In a study of alternating offer bargaining with discounting, perfect equilibrium was found to have little predictive power under the conventional assumption that bargainers' utility is measured by

Game Theory of Mind

TLDR
It is shown it is possible to deduce whether players make inferences about each other and quantify their sophistication on the basis of choices in sequential games, and exactly the same sophisticated behaviour can be achieved by optimising the utility function itself (through prosocial utility), producing unsophisticated but apparently altruistic agents.

Modeling Reciprocal Behavior in Human Bilateral Negotiation

TLDR
It is shown that reciprocity has significant implications for computer agents that interact with people over time, and a model for predicting people's actions in multiple bilateral rounds of interactions that represents reciprocity as a tradeoff between two social factors is proposed.

Information, Strategic Behavior, and Fairness in Ultimatum Bargaining: An Experimental Study.

TLDR
The lower the information content of the message, the greedier the demand x of the proposer, and the modal proposal allocates (almost) all of the cake to X.