DEMAND COMMITMENT BARGAINING IN 3-PERSON QUOTA GAME EXPERIMENTS

The paper reports results of experiments on three-person quota games w ithout the grand coalition and with zero values for the one-person coa litions. The experimental procedure used is the demand commitment mode l. This model generates finite extensive games with perfect informatio n whose neutral equilibrium point predicts quota agreements. The term neutral means that at every decision point all locally optimal choices are taken with equal probability. Quota agreements do not perform bet ter than equal division payoff bounds, but nevertheless the experiment s show that quotas have some behavioral relevance. The demand commitme nt model seems to favor learning of the quota concept if subjects have the opportunity to gain experience by frequently playing the same gam e,