The 50-50 Split as a Social Norm in Bargaining
A social norm within a community, such as the expectation to share windfalls equally, can serve as a mechanism to resolve bargaining situations. For example, if two friends find money, the existence of a '50-50 split' norm for lucky finds makes it highly probable that a proposal to share the money equally will be accepted, thus facilitating a mutually agreeable outcome.
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Introduction to Microeconomics Course
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CORE Econ
Ch.4 Strategic interactions and social dilemmas - The Economy 2.0 Microeconomics @ CORE Econ
The Economy 2.0 Microeconomics @ CORE Econ
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Learn After
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