Employee Profile

Magnus Våge Knutsen

Associate Professor - Campus Stavanger

Department of Economics


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 - Full text in research archive

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


Academic Degrees
Year Academic Department Degree
2021 BI Norwegian Business School PhD in Economics
2013 Universitetet i Bergen Master of Philosophy
Work Experience
Year Employer Job Title
2021 - Present BI Norwegian Business School Associat professor
2021 - 2021 BI Norwegian Business School Lecturer
2016 - 2021 BI Norwegian Business School PhD Candidate