More Money vs More Certainty? Behaviour in Stochastic Alternating-Offer Experiments

We experimentally study a class of stochastic alternating-offer bargaining games in which the final stage of interaction follows the rules of a (private) impunity game. We assess the symmetric dependence of proposers’ and responders’ behaviour to the stakes at play and to the likelihood of future play, and other behavioural conjectures related to bounded-rationality, conflict rates, probability misperception and emotional commitment. Besides a non-symmetric behaviour, a structural econometric analysis of the data collected reveals a remarkable similarity of proposers’ and responders’ behaviour which is predominantly driven by probability misperceptions and emotional commitments.