Invariance failure under subgame perfectness in sequential bargaining

basic property of any normative theory of decision making - individual or g roup - is its invariance under the theory's own equivalence specification. Growing evidence from experimental studies in several areas of game playing indicates that the game-theoretic notion of strategic equivalence is syste matically violated in the behavioral arena. The present study expands the d esign of previous studies of bilateral bargaining by including a third part y and a new trading rule - modifications which induce behavioral patterns t hat reject equivalence under subgame perfection. (C) 2000 Elsevier Science B.V. All rights reserved. PsycINFO classification: 2900; 2300 JEL classific ation: C72; C78; C91.