Rubinstein Bargaining with Other-Regarding Preferences

While classic bargaining theory abstracts from other-regarding motives, bargaining processes often take place among parties who care about each other's payo . In this paper, I analyze how other- regarding preferences a ect the outcome, duration, and use of means to harm the other in reference to a Rubinstein bargain- ing game. It is found that agents regarding each other's payo negatively will reach less equal outcomes, take longer to reach this outcome and are more likely to harm each other if they have means available to do so.