title: The dynamics of coalition formation - a multilateral bargaining experiment with free timing of moves
creator: Tremewan, James
creator: Vanberg, Christoph
subject: ddc-330
subject: 330 Economics
description: We experimentally study behavior in a finitely repeated coalition formation game played in real time. Subjects interact in groups of three, bargaining over the distribution of payments which occur at regular time intervals. During a given interval, payments occur if and only if a majority is in agreement about their allocation. Aside from these rules, we purposefully impose little structure on the bargaining process. We investigate the frequency and stability of different types of agreements, as well as transitions between them. The most frequent  agreement is an equal split between two players, leaving the third with nothing. The most stable is the three-way equal split. Transitions between agreements are frequent and generally consistent with myopic payoff maximization. We find evidence that both fairness concerns and risk aversion may explain the prevalence of the three-way equal split, and that loyalty can play a role in cementing coalitions.
date: 2015-02
type: Working paper
type: info:eu-repo/semantics/workingPaper
type: NonPeerReviewed
format: application/pdf
identifier: https://archiv.ub.uni-heidelberg.de/volltextserverhttps://archiv.ub.uni-heidelberg.de/volltextserver/18159/1/Tremewan_Vanberg_2015_dp582.pdf
identifier: DOI:10.11588/heidok.00018159
identifier: urn:nbn:de:bsz:16-heidok-181595
identifier:   Tremewan, James ; Vanberg, Christoph  (2015) The dynamics of coalition formation - a multilateral bargaining experiment with free timing of moves.  [Working paper]     
relation: https://archiv.ub.uni-heidelberg.de/volltextserver/18159/
rights: info:eu-repo/semantics/openAccess
rights: http://archiv.ub.uni-heidelberg.de/volltextserver/help/license_urhg.html
language: eng