Title

Reference Point Effects in Legislative Bargaining: Experimental Evidence

Document Type

Article

Publication Date

2019

Abstract

Recent interest in reducing budget deficits raises questions regarding the impact on legislative bargaining of cuts versus increases in government spending. Using an experimental design where the outcomes are theoretically isomorphic results in significant differences in bargaining outcomes: There are longer delays in reaching agreement with cuts than with increases, along with which legislative types get their proposals passed. These results can be attributed to a change in agents’ reference point in conjunction with differential responses to gains versus losses.

DOI

10.1007/s10683-017-9559-7

Publisher

Springer

Publication Information

Experimental Evidence

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