Econ 166A
Sinervo/Musacchio
Bargaining Game
1) (ONE SHOT BARGAINING) Your team and an opposing team are bargaining for a pie (or other reward) that
consists of 3 slices (units). Your team must propose a sharing for this pie (propose that your team gets either
3,2,1,0 and the opposing team gets the rest.) If the sum of both teams’ proposals is more than 3, then both
teams get nothing, and the instructors get the entire pie. Otherwise, each team gets the amount they proposed
taking. If the sum of the proposals is less than 3, the instructors get the remainder of the pie.
Keep your team’s proposal secret. In order to help your team reach consensus, each team member will suggest
what they think their team’s proposal ought to be and write it down below. We will determine the team’s
proposal by averaging the numbers from all the team members and rounding up to the nearest integer.
Round Your suggested
proposal
{0,1,2,3}
1
2
3
4
5
6
7
8
Your team
Proposal
{0,1,2,3}
Opposing
Proposal
Payoffs
(your team, opposing team, instructors)
2) (SEQUENTIAL BARGAINING) One team is selected to propose a sharing (i.e. proposing team gets either 3,2,1,0
– opposite team gets the rest). The other team can then choose to accept the offer, or reject. If the team rejects,
the instructors immediately get 1 slice of the pie, and now there are only 2 slices left. The team that rejected the
offer can now suggest a sharing of the remaining 2 slices. If the other team rejects this counteroffer then the
instructors get another slice, and only 1 slice remains for the teams. The team that rejected the counteroffer
can proposal a sharing of the 1 slice. The other team can then accept or reject this offer, and if rejected the slice
goes to the instructors.
ROUND 1:
Final
Payoffs:_____________________
stage
ROUND 2:
Final
Payoffs:_____________________
stage
ROUND 3:
Final
Payoffs:_____________________
stage
ROUND 4:
Final
Payoffs:_____________________
stage
Offer Team #
Offer: (#for T1, # for T2)
Accepted (Y/N)?
Offer Team #
Offer: (#for T1, # for T2)
Accepted (Y/N)?
Offer Team #
Offer: (#for T1, # for T2)
Accepted (Y/N)?
Offer Team #
Offer: (#for T1, # for T2)
Accepted (Y/N)?
1
2
3
1
2
3
1
2
3
1
2
3