Fairer Deals for All: How Bargaining Frictions Improve Negotiations
The study examines how people bargain over sharing profits. They add barriers like fixed decision times and communication delays to the negotiation process. The researchers find that these hurdles make bargaining less efficient but lead to a fairer split of the profits. In a nutshell, as obstacles increase, the bargaining becomes slower but ends up with a more equal division of the surplus. This research delves into how complexities in negotiation impact fairness and efficiency in sharing rewards.