Explaining Bargaining Impasse: The Role of Self-Serving Biases

In the paper

“Thirty-seven percent of judges reported that they most frequently allow reimbursement at the”

What the sources say

• Supported

  The section “Judges as Dispensers of Fair Treatment” reports that 37% of judges said they most frequently allow reimbursement at the value of services to the secured creditor, while only 15% of lawyers said judges reimburse at those rates. The claim preserves both figures and the comparison. (LLM, conf=0.95)

  cites Eisenberg (1994)

In the paper

“Sixty percent of lawyers report that they always comply with fee guidelines, but judges reported that only 18 percent of attorneys always comply.”

What the sources say

• Supported

  The discussion of Table 3, Question 41 states that over 60% of lawyers reported always complying with fee guidelines, while judges reported that only 18% of attorneys always comply. The table gives the corresponding figures as 60.2% and 18.3%, consistent with the citing sentence's rounded numbers. (LLM, conf=0.95)

  cites Eisenberg (1994)

In the paper

“For example, 78 percent of judges reported that they rule on interim fee applications at the fee hearing, but only 46 percent of lawyers report that the judges rule so quickly.”

What the sources say

• Supported

  The discussion of Table 1, Question 3, explicitly reports that 78% of judges and 46% of lawyers said judges rule on interim fee applications at the fee hearing. Table 1 corroborates the rounded figures with responses of 77.6% and 45.5%, respectively. (LLM, conf=0.95)

  cites Eisenberg (1994)

In the paper

“Consistent with the psychology research, plaintiffs tended to weight arguments favoring the plaintiff as much more compelling than those favoring the defendant, and vice versa.”

What the sources say

• ?Not checked — no full text of the sourcecites Babcock, Loewenstein, Issacharoff and Camerer, 1995

In the paper

“Our results indicate that informing subjects of the bias made them more realistic about the predictions of the other party.However, it did not cause them to modify their own predictions of the judge.”

In the paper

“As in the previous experiment, the discrepancy in the parties' assessments of the judge's decision was related to settlement; only 4 percent of the negotiations in which the discrepancy was below the median ended in impasse while 28 percent of pairs above the median discrepancy failed to settle (see the second row of Table 1).”

In the paper

“Our first experiment with this framework found strong evidence that the negotiators formed self-serving assessments of the judge's award and that the discrepancy between the plaintiffs' and defendants' assessments was correlated with the parties' ability to reach voluntary settlements (Loewenstein, Issacharoff, Camerer Table 1 Probability of Impasse by Discrepancy Between Plaintiffs' and Defendant”

What the sources say

• ?Not checked — no full text of the sourcecites Loewenstein, Issacharoff, Camerer and Babcock, 1993 source

In the paper

“This did change the discrepancy in expectations, and in a way that was marginally statistically significant, but opposite to the intended direction.Again, there was no significant impact on the settlement rate.”

In the paper

“Consistent with a causal relationship running from the self-serving bias to impasse, when the subjects did not learn their roles until after they read the case and made their assessments of the judge and fairness, only 6 percent of the negotiations were resolved by the judge; however, when the subjects knew their roles initially, 28 percent of negotiations had to be resolved by the judge (this”

What the sources say

• ?Not checked — no full text of the sourcecites Babcock, Loewenstein, Issacharoff and Camerer, 1995

In the paper

“However, being informed of the bias had no effect on the discrepancy in the parties' expectations, nor on the likelihood of settlement.”

In the paper

“The self-serving bias was clear in that plaintiffs' predictions of the judge averaged $14,527 higher than defendants', and plaintiffs' fair settlement values averaged $17,709 higher than defendants', with both differences statistically different from zero (p < .0001).”

In the paper

“The mean difference of $711 is statistically and economically significant; it is equivalent to about 2.4 percent of average teacher salary at a time when salary increases averaged less than 5 percent per year.”

In the paper

“Undoubtedly, all of our experimental subjects, especially the law and business school students, had numerous experiences with bargaining prior to participating in our experiment, but this experience did not seem to alert them even to the existence of the self-serving bias, let alone actually give them the capacity to counteract it.”

In the paper

“Since both parties are given the same case information and neither party has private information about the judge, differences in estimates between defendant and plaintiff cannot be attributed to differences in information.”

In the paper

“Seven-hour subjects, on average, thought the 10-hour subject should be paid $30.29.However, the 10-hour subjects thought they should be paid $35.24.The difference between $30.29 and $35.24-$4.95-wascited as evidence of a selfserving bias in perceptions of fairness.”

What the sources say

• ?Not checked — no full text of the sourcecites Messick and Sentis (1979) source

In the paper

“One limitation of this study is that it does not necessarily demonstrate that the self-serving bias causes impasse.It is possible, for example, that there is a third factor, perhaps some element of personality such as aggressiveness, that causes certain subjects to misestimate the judge and to be unwilling to setde.”

In the paper

“The evidence we review shows that the self-serving bias, and the impasses it causes, occurs even when disputants possess identical information, which suggests that private and incomplete information may not be as critical for nonsettlement as is commonly believed.”

In the paper

“Prior research on self-serving biases (Dunning, Meyerowitz and Holzberg, 1989), and on biased processing of information in general (Darley and Gross, 1983), suggests that the bias results from selective information processing.”

What the sources say

• ?Not checked — no full text of the sourcecites Dunning, Meyerowitz and Holzberg, 1989 source
• ?Not checked — no full text of the sourcecites Darley and Gross, 1983 source

In the paper

“When they learned about the bias, subjects apparently assumed that the other person would succumb to it, but did not think it applied to themselves.”

In the paper

“People also tend to attribute their successes to ability and skill, but their failures to bad luck (Zuckerman, 1979).”

What the sources say

• ?Not checked — no full text of the sourcecites Zuckerman, 1979 source

In the paper

“Princeton students saw the Dartmouth team commit twice as many flagrant penalties and three times as many mild penalties as their own team.Dartmouth students, on the other hand, recorded an approximately equal number of penalties by both teams.”

What the sources say

• ?Not checked — no full text of the sourcecites Hastorf and Cantril (1954) source

In the paper

“A likely interpretation is that both sides viewed as fair the focal settlement that benefitted themselves, so the $20prize player was likely to hold out for half of the chips, while the $5-prize player demanded equal expected values.”

What the sources say

• ?Not checked — no full text of the sourcecites Roth and Murnighan, 1982 source

In the paper

“This should not be taken to mean that the bias comes from asymmetric information.Instead, what we have in mind is that the parties-even with complete information-interpret the situation in different ways.”

In the paper

“Again, consistent with the self-serving bias, perhaps subjects whose pies shrank relatively slowly viewed this as justification for requesting a large fraction of the pie, but subjects whose pies shrunk quickly rejected the rate of pie-shrinkage as a criterion for allocating the pie.”

What the sources say

• ?Not checked — no full text of the sourcecites Weg, Rapoport and Felsenthal (1990) source

In the paper

“It seems that proposers in the contest condition felt self-servingly entitled to a higher payoff, but responders did not view the contest as relevant to the fair division of the pie.”

What the sources say

• ?Not checked — no full text of the sourcecites Hoffman, McCabe, Shachat and Smith, 1994 source

In the paper

“Offers in the contest condition were lower than in the chance condition, and the rejection rate was substantially higher.”

What the sources say

• ?Not checked — no full text of the sourcecites Hoffman, McCabe, Shachat and Smith, 1994 source

In the paper

“In an experimental study of labormanagement negotiations, Thompson and Loewenstein (1992) found that management estimates of a fair settlement were significantly lower than those provided by the union and observed a significant positive correlation between the difference in assessments of fairness and the length of strikes.”

What the sources say

• ?Not checked — no full text of the sourcecites Thompson and Loewenstein (1992) source

In the paper

“In a study by Camerer and Loewenstein (1993), subjects bargained over the sale of a piece of land, knowing only their reservation value.All pairs agreed on a sale price.”

What the sources say

• ?Not checked — no full text of the sourcecites Camerer and Loewenstein (1993) source

In the paper

“But in practice, the modal offer is typically half the pie, and smaller offers are often rejected.”

In the paper

“As Cox and Isaac (1986) write, experiments in economics do not normally involve”

What the sources say

• ?Not matched

  Couldn’t be matched to a paper in Crossref, so it can’t be checked.

  cites Cox and Isaac (1986)

In the paper

“When neither player knew who would receive which payoff, subjects generally agreed to divide the chips about equally and only 12 percent of pairs failed to reach an agreement and ended up with no payoff.However, when both subjects knew who was assigned to which payoff, 22 percent failed to reach agreement.”

What the sources say

• ?Not checked — no full text of the sourcecites Roth and Murnighan, 1982 source

In the paper

“In one investigation of this game, Weg, Rapoport and Felsenthal (1990) found that when the pie shrunk at the same rate for both individuals, the rejection rate was only 12 percent in the first round, but when the pie shrunk at different rates for each subject, the rejection rate was 57 percent in the first round.”

What the sources say

• ?Not checked — no full text of the sourcecites Weg, Rapoport and Felsenthal (1990) source

In the paper

“However, even in a very simple setting like this, as soon as asymmetries are introduced between the parties-for example, different nonagreement values or costs of nonsettlement, or subtle differences in roles-both parties' notions of fairness will tend to gravitate toward settlements that favor themselves.They will not only view these settlements as fair, but believe that their personal conception”

In the paper

“Although ultimatum experiments have been used by economists to illustrate the importance of fairness considerations, rejections in these experiments can be explained by self-serving biases.Proposers, who view themselves in a powerful role, believe that they deserve more than half of the pie, whereas responders do not believe that role should affect the division of the pie.”

In the paper

“Moreover, failure to collect data on psychological constructs robs us of information that can contribute to more nuanced tests of theory.”

In the paper

“Researchers who subscribe to the illusion that their particular experiment is”

In the paper

“For example, Tracy (1986,1987) finds a positive relationship between investor uncertainty (a proxy for the union's uncertainty about the firm) and strike activity and cites this as evidence consistent with an asymmetric information model of impasse.”

What the sources say

• ?Not matched

  Couldn’t be matched to a paper in Crossref, so it can’t be checked.

  cites Tracy (1986,1987)

In the paper

“Indeed, Akerlof and Yellen (1985) have shown that people do not even seem able to remember with any great accuracy whether they were employed or unemployed during the past year.”

What the sources say

• ?Not matched

  Couldn’t be matched to a paper in Crossref, so it can’t be checked.

  cites Akerlof and Yellen (1985)

In the paper

“Because of the reluctance to collect and analyze data on intervening variables, economists have sometimes been forced into very coarse tests of their models' predictions.”

In the paper

“89 percent of subjects state correctly which cards need to be turned over (Cosmides, 1989).”

What the sources say

• ?Not checked — no full text of the sourcecites Cosmides, 1989 source

In the paper

“The response rate for returning the survey was 57 percent for the union presidents and 35 percent for the school board presidents.”

What the sources say

• ?Not checked — no full text of the sourcecites Babcock, Wang and Loewenstein (1996) source

In the paper

“All economics involves psychology.”

In the paper

“When the problem is given to people in the abstract form just described, very few people give the correct answer, which is”

What the sources say

• ?Not checked — no full text of the sourcecites Cosmides, 1989 source

In the paper

“Models that incorporate individuals' preferences for”

What the sources say

• ?Not checked — no full text of the sourcecites Bolton, 1991
• ?Not matched

  Couldn’t be matched to a paper in Crossref, so it can’t be checked.

  cites Rabin, 1993

In the paper

“Bayes' rule, the rational expectations assumption and the theory of revealed preference are all psychological assumptions about how people form expectations and what motivates them.”

In the paper

“However, when the task is put into a familiar context, almost everyone answers correctly.”

What the sources say

• ?Not checked — no full text of the sourcecites Cosmides, 1989 source