Title: Payment scheme, sorting and bargaining: a laboratory experiment (joint work with Noemi Pace)
Abstract: The scheme incentive selected in an experiment might trigger different type of behavior in participants. This work aims to analyze how individual decide to bargain when they can select the type of payment to receive at the end of the experiment controlling for previous experience and individual characteristics. It is well known that payment method is highly correlated to the risk preferences shown by individuals, but little research is devoted to the analysis of the behavior induced and triggered by Random lottery Incentive scheme (RLI for short) (Cubitt et al. 1998) and cumulative payment.