Efficiency versus Equality in Bargaining
Fabio Galeotti
- Fonction : Auteur
- PersonId : 172014
- IdHAL : fabio-galeotti
- ORCID : 0000-0003-0221-5470
- IdRef : 253120632
Maria Montero
- Fonction : Auteur
- PersonId : 780477
- ORCID : 0000-0002-6999-7342
Anders Poulsen
- Fonction : Auteur
- PersonId : 758688
- ORCID : 0000-0003-1742-2595
Résumé
We consider how the outcome of bargaining varies with changes in the trade-off between equality, efficiency, and total-earnings maximization. We observe that subjects avoid an equal-earning outcome if it is Pareto inefficient; a large proportion of bargaining pairs avoids an equal and Pareto efficient outcome in favor of one giving unequal and total-earnings maximizing payoffs, and this proportion increases when unequal outcomes imply larger earnings to one of the players, even though this also implies higher inequality; finally, we document a compromise effect that violates the independence of irrelevant alternatives condition.
Domaines
Economies et financesFormat du dépôt | Notice |
---|---|
Type de dépôt | Article dans une revue |
Titre |
en
Efficiency versus Equality in Bargaining
|
Résumé |
en
We consider how the outcome of bargaining varies with changes in the trade-off between equality, efficiency, and total-earnings maximization. We observe that subjects avoid an equal-earning outcome if it is Pareto inefficient; a large proportion of bargaining pairs avoids an equal and Pareto efficient outcome in favor of one giving unequal and total-earnings maximizing payoffs, and this proportion increases when unequal outcomes imply larger earnings to one of the players, even though this also implies higher inequality; finally, we document a compromise effect that violates the independence of irrelevant alternatives condition.
|
Auteur(s) |
Fabio Galeotti
1
, Maria Montero
2
, Anders Poulsen
3
1
GATE Lyon Saint-Étienne -
Groupe d'Analyse et de Théorie Economique Lyon - Saint-Etienne
( 102550 )
- 93, chemin des Mouilles 69130 Écully
6, rue Basse des Rives 42023 Saint-Étienne cedex 02
- France
2
UON -
University of Nottingham, UK
( 407023 )
- University of Nottingham
University Park
Nottingham
NG7 2RD
- Royaume-Uni
3
UEA -
University of East Anglia [Norwich]
( 336687 )
- Norwich Research Park, Norwich, NR4 7TJ, UK
- Royaume-Uni
|
Comité de lecture |
Oui
|
Vulgarisation |
Non
|
Nom de la revue |
|
Langue du document |
Anglais
|
Audience |
Internationale
|
Date de publication |
2019
|
Volume |
17
|
Numéro |
6
|
Page/Identifiant |
1941-1970
|
Domaine(s) |
|
Projet(s) ANR |
|
DOI | 10.1093/jeea/jvy030 |
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