Information, fairness, and efficiency in bargaining

Abstract

(from the chapter) describe some game theoretic models which predict that inefficiency results from incomplete information / illustrate the mixed impact of information on bargaining with three experimental studies / in two of these, giving the bargainers more shared information leads to greater inefficiency, contrary to the broad game theoretic prediction / the third study shows that the effect of information on efficiency is the opposite: in a bargaining situation in which complete information is accompanied by a clear definition of a fair agreement, reducing information can create competing definitions of fairness and create inefficient disagreements [Ss were graduate and undergraduate students] / discuss the results and a variety of implications (PsycINFO Database Record (c) 2008 APA, all rights reserved)