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The Evolution of Bargaining Behavior
Working paper

The Evolution of Bargaining Behavior

Tore Ellingsen
Vol.1995(61)
SSE/EFI Working Paper Series in Economics and Finance, 61, Economic Research Institute (EFI)/Stockholm School of Economics (SSE)
1995

Abstract

bargaining commitment Coase Theorem C78 Evolution
The paper examines the evolutionary foundations of bilateral bargaining behavior, emphasizing the trade-off between commitment and flexibility. When the pie's size is certain, evolution favors the "fair" strategy; accept any share greater than or equal to one half, reject any smaller share. The unique outcome is hence an equal split. In noisy environments, more flexible behavior tends to appear in equilibrium. Since flexibility attracts greediness, there is then a positive probability of conflict.

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