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On the Value of Transparency and Information Acquisition in Bargaining*
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Thomas Gehrig
Published/Copyright:
November 30, 2019
Abstract
We analyze how transparency affects information acquisition in a bargaining context where proposers may choose to purchase information about the unknown outside options of their bargaining partners. Although information acquisition is excessive in all scenarios, we find that bargaining outcomes depend crucially on the transparency of the bargaining environment. In transparent games, when responders can observe whether proposers have acquired information, acceptance rates are higher. Accordingly, in transparent bargaining environments, information is more valuable, both individually and socially.
Published Online: 2019-11-30
Published in Print: 2016-08-01
© 2019 by Walter de Gruyter Berlin/Boston
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Articles in the same Issue
- Foreword: Special Issue in Honor of Reinhard Selten’s 85th Birthday
- Impulse Response Dynamics in Weakest Link Games
- Refining Raiffa – Aspiration Adaptation within the Zone of Possible Ag
- Designing Institutions for Social Dilemmas
- On the Value of Transparency and Information Acquisition in Bargaining*
- Public Statistics and Private Experience: Varying Feedback Information in a Take-or-Pass Game
- An Experiment on Forward vs. Backward Induction: How Fairness and Level k Reasoning Matter
- Social Interaction Promotes Risk Taking in a Stag Hunt Game
