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Social Norms and Bargaining for Others
Digital EventOnline Research Seminar 3:00 pm, Thursday, 4 November 2021 Delegating bargaining to an intermediary agent is common practice in many situations. The proposer, while not actively bargaining, sets constraints on the intermediary agent’s offer. We study ultimatum games where proposers delegate bargaining to an intermediary agent by setting boundaries on either end of the offer. We find that after accounting for truncation, intermediaries treat these boundaries similarly to a non-binding proposer suggestion. Specifically, we benchmark on a nonbinding setting where the proposer simply states the offer he would like to have made. We find that specifying a constraint on the intermediary [...]