Experimental Economic Approaches on Trade Negotiations

Hankyoung Sung
JEL codes: 
KIEP Working Paper 07-08

This paper experimentally examines the multilateral bargaining
games to derive some policy implications for real trade negotiations. It
shows the following findings: there are significant delays in games
including veto players in some circumstances, but no delays in games
including multiple-vote players. In addition, non-veto players as weak
players, which are disadvantaged in taking share, make collusive
attempts against veto players, but not effectively. As policy implications,
this paper suggests enforceable deadlines or threats toward low-quality
agreements to reduce the delay problems. Furthermore, as another
remedy for the delays, it suggests an effort to group countries like
multiple-vote players in unequal-weight games.