Evaluating the Strength of Social Norms in Bargaining
Consider two separate bargaining situations. In Situation A, two strangers who have never met before must decide how to divide a $1,000 bonus they jointly received for helping a tourist. In Situation B, two siblings who co-own a small, successful family business must decide how to divide an unexpected $1,000 profit. In your evaluation, which situation is more likely to result in a swift and mutually agreeable 50-50 split? Justify your answer by analyzing the likely social preferences of the individuals and the strength of the relevant social norms in each context.
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