Previous research has shown that individuals do not respond to changes in their bargaining position to the extent predicted by standard bargaining theories. Most of these results come from experiments with bargaining power allocated exogenously, so that individuals may perceive it as having been...

We use a human–subjects experiment to investigate how bargaining outcomes are affected by changes in bargainers’disagreement payoffs. Subjects bargain against changing opponents, with an asymmetric disagreement outcome that varies over plays of the game. Both bargaining parties are informed...

We use a laboratory experiment to study bargaining in the presence of random arbitration. Two players make simultaneous demands; if compatible, each receives the amount demanded as in the standard Nash demand game. If bargainers’ demands are incompatible, then rather than bargainers receiving...