Posted by Jonathan Willner on October 23, 1997 at 10:23:11:
Mostly a comment on student behavior. In a small class (10) studnets
This experiment became very interesting to watch. First
round was as expected. In the second round, labor unionized
and decided to pattern bargain choosing the individual firm
they suspected of being the "weaker" in terms of intimidation (interesting
that most labor was female and they choose the lone male firm to
negotiate with first). One of the labor union members eventually
broke ranks (became a scab?) accepted the derision and the money.
Interesting case that did not occur in the larger class. It also lead
to different results than would have occurred in a less collusive environment.