What is it about?
We present findings of an experimental study of negotiations over the share of a monetary loss. Groups of four agents with differing initial endowments must unanimously agree on the contribution that each member of the group is expected to make so that a financial loss imposed on the group is covered.
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Why is it important?
In several western countries the economies do not do as well as things worked in the past. France and Germany as members of the European Union are prominent examples for this rather difficult situation. So measures to "tighten the belt" may be necessary or even unavoidable. But the citizens of these economies are rather unwilling to contribute with their own share. Our bargaining situations try to depict what might happen among those who are immediately involved.
Perspectives
Though our bargaining situations are made up, they are, in our view, highly relevant for the real world, particularly for those countries that suffer from stagnation or even an economic decline.
Professor Wulf Gaertner
University of Osnabrueck
Read the Original
This page is a summary of: Exempting agents from any burden sharing: A lab-experimental study on the distribution of a monetary loss, The Journal of Economic Inequality, September 2025, Springer Science + Business Media,
DOI: 10.1007/s10888-025-09693-6.
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