Offers Beyond the Negotiating Dyad

Author(s)
Manuel Schwaninger, Sabine Neuhofer, Bernhard Kittel
Abstract

Based on the assumption of self-interest, allocations in network exchange models and experiments are typically restricted to negotiating dyads. Network members beyond the dyad are excluded by design from a share of the divided resource. Social value orientation may, however, induce subjects to allocate parts of the resource to third network members. We experimentally study three-person networks in which subjects can make bilateral offers that allocate payoff shares to all network members. Our results show that subjects give on average ten percent of the bargaining value to third network members if they have this option. The concern for third network members is moderated by social values: the stronger the social value orientations of the deciding individuals, the more payoff is allocated to third network members. We conclude that fairness is an important initial motivator that affects the way in which structural power is used in network exchange.

Organisation(s)
Department of Economic Sociology
Journal
Social Science Research
Volume
79
Pages
258-271
No. of pages
14
ISSN
0049-089X
DOI
https://doi.org/10.1016/j.ssresearch.2018.10.014
Publication date
10-2018
Peer reviewed
Yes
Austrian Fields of Science 2012
502045 Behavioural economics, 504030 Economic sociology
Keywords
ASJC Scopus subject areas
Education, Sociology and Political Science
Portal url
https://ucris.univie.ac.at/portal/en/publications/offers-beyond-the-negotiating-dyad(6f8c9cca-5ad8-448c-a80b-81991d28685a).html