Against the proportionality principle: Experimental findings on bargaining over losses

DC FieldValueLanguage
dc.contributor.authorGaertner, Wulf
dc.contributor.authorBradley, Richard
dc.contributor.authorXu, Yongsheng
dc.contributor.authorSchwettmann, Lars
dc.date.accessioned2021-12-23T16:23:06Z-
dc.date.available2021-12-23T16:23:06Z-
dc.date.issued2019
dc.identifier.issn19326203
dc.identifier.urihttps://osnascholar.ub.uni-osnabrueck.de/handle/unios/14414-
dc.description.abstractThe outcomes of bargaining over losses, the subject of this paper, have rarely been studied. But experimental studies of related situations, such as those involving bankruptcies or bequests in which the sum of the legal claims that can be made against a bank or firm or estate are greater than their values, have produced strong support for the proportionality principle. To test whether this principle would find support in other situations involving losses we designed an experimental game in which four players start out with differing initial endowments of real money. They are then informed that a certain amount of this resource has to be given back to the experimenter. How should the loss be shared among the agents? This game was run at different locations and under different treatments over a period of almost three years. We found that the proportionality principle was rarely proposed and even less frequently accepted as a solution to this problem. One of the main reasons for this result was that the two players with the smallest endowments opposed most of the proposals which asked them to contribute at least some positive amount of their own initial resource.
dc.description.sponsorshipSuntory and Toyota International Centres for Economics and Related Disciplines (STICERD) at the London School of Economics; University of Halle-Wittenberg; R.B. and W.G. received an award only for the London experiments by the Suntory and Toyota International Centres for Economics and Related Disciplines (STICERD) at the London School of Economics. There is no grant number. L.S. received a small grant from the University of Halle-Wittenberg to pay the students in the experiments run at that school. There is no grant number. The funders had no role in study design, data collection and analysis, decision to publish, or preparation of the manuscript.
dc.language.isoen
dc.publisherPUBLIC LIBRARY SCIENCE
dc.relation.ispartofPLOS ONE
dc.subjectBANKRUPTCY
dc.subjectCLAIMS
dc.subjectDIVISION
dc.subjectFAIRNESS
dc.subjectGAME-THEORETIC ANALYSIS
dc.subjectJUDGMENTS
dc.subjectMultidisciplinary Sciences
dc.subjectRULES
dc.subjectScience & Technology - Other Topics
dc.subjectSURPLUS
dc.subjectTAXATION PROBLEMS
dc.titleAgainst the proportionality principle: Experimental findings on bargaining over losses
dc.typejournal article
dc.identifier.doi10.1371/journal.pone.0218805
dc.identifier.isiISI:000484974100010
dc.description.volume14
dc.description.issue7
dc.contributor.orcid0000-0002-4951-8623
dc.publisher.place1160 BATTERY STREET, STE 100, SAN FRANCISCO, CA 94111 USA
dcterms.isPartOf.abbreviationPLoS One
dcterms.oaStatusgold, Green Published, Green Submitted
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