Browsing by Subject "Joint production"

Filter results by typing the first few letters
Now showing 1 - 2 of 2
  • Thumbnail Image
    ItemOpen Access
    Bargaining games with joint production
    (Oxford University Press, 2012) Karagözoğlu, Emin; Croson, R.; Bolton, G. E.
    This article outlines the literature on experimental bargaining and distribution games with joint production. The analysis of aggregate behavior strongly rejects game theoretical predictions and shows that at least some subjects behave in line with equity-based considerations. The influence of fairness judgments on bargaining behavior is stronger when there is randomness in the production process. Power distribution seems to affect fairness judgments. It is noted that knowing the focal point provides a better forecast of outcomes than knowing whether there is hard leverage. Many joint production processes involve complementarities. The length of the relationship (e.g., short-term vs. long-term) may affect the fairness judgments and hence the bargaining. Improving the strategy space in bargaining experiments by allowing free-form negotiation and communication seems to be a promising step forward.
  • Thumbnail Image
    ItemOpen Access
    Contests over joint production on networks
    (Wiley, 2020) Doğan, Serhat; Keskin, K.; Sağlam, Çağrı
    We consider a network of heterogeneous agents where each edge represents a two‐player contest between the respective nodes. In these bilateral contests, agents compete over an endogenous prize jointly produced using their own contest efforts. We provide a necessary and sufficient condition for the existence of Nash equilibrium and characterize the equilibrium total effort for every agent. Our model has insightful results regarding the network type, that is, depending on whether the network is bipartite or nonbipartite. Finally, considering the sum of all expected utilities as an efficiency notion, we investigate the optimal network structure.