Unstructured Bargaining Upends Conventional Wisdom, Favors Equal Division
The study tested different bargaining models using experiments. The results showed that some key principles like efficiency and symmetry were supported, while others like scale invariance were not. Equal division was common, even in unequal situations. The equal-division solution was the most frequent, and the deal-me-out solution best explained the data. Other popular solutions like Nash or Kalai-Smorodinsky performed poorly in the experiments.