Template-Type:ReDIF-Paper 1.0  
Title: Break-offs in Bargaining, Evidence from a Video Experiment
Author-Name:Hennig-Schmidt, Heike
Classification-JEL:C7, C72, C79 
Keywords: Bargaining experiments, video experiments, break offs, motivation, negative reciprocity, power,
	emotions 
Abstract:In this paper we report on a new methodology of observing subjects behavior in a laboratory situation:
	Videotaping groups of subjects who have to perform a common task provides information on decision processes
	that cannot be obtained by another method. We conducted a videotaped bargaining experiment in order to gain
	information on the emergence of break offs in negotiations. Field studies as well as experiments show that break
	offs are a nonnegligible phenomenon in bargaining. There is an extended literature on the question whether
	these findings can be explained within the game theoretic framework assuming individual rational players being
	guided only by economic or whether one has to assume also noneconomic motivating factors. 
	Analyzing the transcripts reveals that potential break offs are discussed in all sessions and not only in those
	ending by a breakdown. Moreover, subjects are guided by economic and noneconomic motivations. In addition
	to the monetary aspect, concepts are to be considered which have been developed in psychology, i.e. negative
	reciprocity, and power. Based on these findings we present a motivational explanation of potential and actual
	break offs showing that emotions, especially anger, cause subjects to re-evaluate the outcome of the game.
	Excerpts of group discussions (translated into English) in a session ending by break off are to be found in the
	Appendix.  
Length: pages
Creation-Date: 1997-02
Revision-Date: 1997-05
Handle: RePEc:bon:bonsfb:402