Bargaining under large risk - An experimental analysis

W. Güth, S. Kroger, E. Maug

Research output: Contribution to journalArticleScientificpeer-review


We experimentally study behavior in bargaining situations under large risks. To implement realistic risks involved in the field, we calibrate the experimental parameters from an environment involving substantial variation in profits, the motion picture industry. The leading example is the production of a movie that may give rise to a sequel, so actors and producers negotiate sequentially. We analyze the data in light of alternative behavioral approaches to understanding bargaining behavior under large risk.
Original languageEnglish
Pages (from-to)105-129
JournalNew Zealand Economic Papers
Issue number2
Publication statusPublished - 2009


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