Magnus Våge Knutsen

Førsteamanuensis - Campus Stavanger

Institutt for samfunnsøkonomi


Heggedal, Tom-Reiel; Helland, Leif & Knutsen, Magnus Våge (2022)

The power of outside options in the presence of obstinate types

Games and Economic Behavior, 136, s. 454- 468. Doi: 10.1016/j.geb.2022.10.011 - Fulltekst i vitenarkiv

We experimentally investigate the role of two-sided reputation-building in dynamic bargaining. In the absence of outside options, rational bargainers have an incentive to imitate obstinate types that are committed to an aggressive demand, inducing delay. Outside options remove this incentive and ensure immediate agreement whenever two rational bargainers match. Our data support the hypothesis that outside options cut down on imitation and ensure timely agreements, but only if subjects share a belief about what constitutes obstinacy. Further, we find that outside options are exercised excessively and that efficiency is no better than it is in their absence. We ascribe this result to the presence of fairness preferences in the subject pool.

Knutsen, Magnus Våge (2013)

Langsiktig utvikling i offentlige finanser


Akademisk grad
År Akademisk institusjon Grad
2021 BI Norwegian Business School PhD in Economics
2013 Universitetet i Bergen Master of Philosophy
År Arbeidsgiver Tittel
2021 - Present BI Norwegian Business School Associat professor
2021 - 2021 BI Norwegian Business School Lecturer
2016 - 2021 BI Norwegian Business School PhD Candidate