Heterogeneity in Ultimatum Bargaining: The Role of Information, Individual Characteristics, and Emotions

Abstract

Individuals engage in negotiation and bargaining on a daily basis. Some of these negotiations are small and repeated (as with a spouse, friends, or coworkers) while others are larger and relatively infrequent (as with employers, suppliers, or involving a large personal purchase). In some of these negotiations, interests are in conflict, whereas in others interests are aligned. However, underlying each case, there is a surplus to be divided, and frequently each side jockeys for the largest share possible.