Internal Seminar CRENoS-DECA, first semester - Andrea Isoni

Date
20/12/2011 - 13:30 to 14:30
Information

 

Aula Magna - Facoltà di Economia

Via S. Ignazio, 74 - Cagliari 

 

Presentation of the paper

The Effects of Payoff-Irrelevant Cues in Dynamic Bargaining Problems

 

Speaker

Andrea Isoni

University of Cagliari

 

 

Abstract

Andrea Isoni (University of Cagliari)

We investigate the effects of payoff-irrelevant cues in bargaining games with communication.  In an experimental design in which two players bargain over the division of a surplus by claiming valuable objects whose spatial location offers easily recognisable cues, we pit Schelling’s hypothesis that such cues can make communication redundant against the intuition that coordination of expectations occurs through cheap talk.  We find that communication is very powerful, leading to high levels of efficiency.  Regardless of whether inefficient divisions are salient or not, they are extremely rare.  Yet, in line with Schelling’s hypothesis, spatial cues have systematic distributional effects. 

 

 

 

For more information: crenos@unica.it

Tel. +39 070 6756414    Fax +39 070 6756402