The two-dollar bargaining game: Round 2!
Round 2 of this game was a lot more intense. We changed partners and cards. This time I had to be ruthless and get the most I could, that is the $2. I argued for the two dollars saying I needed to pay for a place to sleep that night. My partner also wanted the $2 but for no reason at all, except maybe the satisfaction of picking the bill off the ground and being able to say she found it. She was equally ruthless. In the end, we compromised: I let her pick up the $2 off the ground in exchange for a place to sleep. So even though I didn’t physically get the $2 bill I got something in exchange for it. When we are facing an opponent who needs the same thing we do and is as unwavering as we are, the negotiation may rapidly escalate. I felt the tension rising between us, and it made me furious that she had no argument whatsoever to support her claim for the $2, even though this was all a simulation. Finally, she compromised by letting me stay at her place ...