Negotiation Rules and Bargaining Behavior

Our programmatic review discusses the empirical support of the normative theory of bargaining which is an application of (non-) cooperative game theory and whose predictions depend more or less crucially on the specific rules of bargaining. Unfortunately, little is known about the rules of bargaining, i.e. there is a lack of empirical research concerning this type of institutional economics. An interesting, but hardly satisfactory alternative to such empirical research, namely to derive the rules of bargaining, is illustrated with a help of a simple example. From empirical, mostly experimental results we draw some general conclusions how one might proceed when developing the behavioral theory of bargaining. These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.