2020 Fiscal Year Research-status Report
The experimental economics of decentralization
| Project/Area Number |
20K01553
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| Research Institution | Waseda University |
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Principal Investigator |
Veszteg Robert 早稲田大学, 政治経済学術院, 教授 (30597753)
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| Project Period (FY) |
2020-04-01 – 2023-03-31
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| Keywords | bargaining / information / cooperative bargaining / laboratory experiment / Nash bargaining solution |
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| Outline of Annual Research Achievements |
We have implemented a series of lab experiments related to bargaining in pairs (based on the unstructured protocol developed by Navarro and Veszteg, 2020) at LEEP (Paris, France). Our preliminary findings suggest that the amount of information available regarding the opponent's preferences has a significant impact on the bargaining outcome if earnings are deterministic: with full information there is a tendency to equalize monetary earnings, while with partial information it is simply the number of objects that guides the negotiation. Interestingly, probabilistic earnings (which are in line with theoretical models) lead to similar outcomes independently of the amount of information.
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| Current Status of Research Progress |
Current Status of Research Progress
3: Progress in research has been slightly delayed.
Reason
Restrictions on in-person human interaction imposed by authorities all around the world in 2020 have created important challenges for running experiments on human decision-making in the laboratory. We have decided to wait for these restrictions to be lifted (hopefully in the second half of 2021) instead of implementing experiments online, because we do not want to sacrifice the experimental control that the laboratory can guarantee.
We have used the extra time made available by postponing experiments to further exploring the existing literature. This could polish and ultimately improve the experimental designs that we take into the lab in the future.
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| Strategy for Future Research Activity |
We have adapted our approach to the new reality which requires significant social distancing. Before collecting new data in new experiments we are going to work with existing datasets and partially shift our focus on theoretical work and the review of the existing literature.
Also, the ban on international travel has "saved" us important monetary amounts originally allocated to attending scientific meetings. We wish to use them for collecting additional data through extra experimental sessions in the future.
Overall, we are planning to follow the research plan originally proposed in the application document.
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| Causes of Carryover |
Restrictions on in-person human interaction imposed by authorities all around the world in 2020 have created important challenges for running experiments on human decision-making in the laboratory. Also, the ban on international travel has "saved" us important monetary amounts originally allocated to attending scientific meetings.
We wish to use those amounts for collecting additional data through extra experimental sessions in the future.
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