Evaluation of Learning in the Bilateral Winner's Curse

• NCJ Number: 110839
• Author(s): S B Ball; M H Bazerman; J S Carroll
• Date Published: 1988
• Length: 28 pages
• Corporate Author: Northwestern University
• Publication Format: Document
• Language: English
• Country: United States of America
• Note: Working Paper No. 14

Annotation

Research on bilateral bargaining behavior under uncertainty has found that, under asymmetric information, negotiators deviate from normative behavior by ignoring the contingent behavior of the opponent negotiator. This results in negative profits, or, the 'winner's curse'.

Abstract

This study provided subjects multiple opportunities with feedback to learn to incorporate valuable information about the decisions of others and thus avoid the winner's curse. However, this learning opportunity failed to eliminate the winner's curse. 1 table and approximately 30 references. (Author abstract modified)