Model Predictability in Bargaining

Summary

An attempt was made to integrate the apparently contradictory findings of recent research on “tough” and “soft” models of bargaining behavior. A laboratory bargaining experiment, conducted with 60 male and female undergraduates, indicated that soft concession patterns were often found together with tough initial demands, and tough concession patterns were often found together with soft initial demands. Similar opponent initial demand strategies created the appearance of reciprocity of opponent concession frequency and average concession size, whereas dissimilar opponent initial demand strategies did not. The effect of one's own initial behavior appeared to be larger than that of the behavior of one's opponent. It was suggested that similarity or dissimilarity of opponent initial demand strategy might affect which bargaining model, tough or soft, was supported by any set of experimental findings.