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An experimental game of loss sharing.
In: ExCEN Working Papers Series - Experimental Economics Center No. 17-01. Georgia State University: Andrew Young School of Policy Studies, 2017. 36 S.
We conduct a lab-experimental study of bargaining over the distribution of monetary losses. Groups of four differently endowed participants must agree, as a group, on the contribution each participant will make to cover a financial loss imposed on the group. The study sheds light on burden sharing and what loss allocation rules groups adopt. Furthermore, we characterize a new theoretical model which contains the proportional rule and equality of losses as special cases but collides with the constrained equal awards rule. The combination of our model and the constrained equal awards rule can explain the majority of proposals made in our experiment.
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Publication type
Working or research paper
Keywords
loss sharing; axiomatic characterization of allocation rules; experimental bargaining
Proceedings Title
ExCEN Working Papers Series - Experimental Economics Center No. 17-01
Quellenangaben
Pages: 36 S.
Publisher
Andrew Young School of Policy Studies
Publishing Place
Georgia State University