Fairness vs. Simplicity in Appointment Rules

titleFairness vs. Simplicity in Appointment Rules
start_date2024/12/06
schedule11h15-12h30
onlineno
location_info6th floor room
summaryC.Alos-Ferrer, S. Barberà, D. Coelho High-stakes conflicts between firms and countries are often settled through structured bargaining protocols, for example for the selection of arbitrators. Those protocols are extensive form games with perfect information, and they are judged on the merits of their subgame-perfect equilibria, e.g.efficiency. However, real-life agents often fail to implement backwards induction and exhibit other-regarding preferences. In a large experiment, we compare two prominent protocols and show that those concerns affect outcomes. Bargaining protocols whose equilibria are unfair (in a maximin sense) fare poorly compared to those favoring compromises. However, lengthy protocols are at a disadvantage because they elicit non-equilibrium behavior.
responsiblesSaucet, Pejsachowicz