Data and Code for: Splitting the Difference in Incomplete Information Bargaining: Theory and Widespread Evidence from the Field

This paper documents a robust pattern from diverse sequential bargaining settings: agents favor offers that split the difference between the previous two offers. Our empirical settings include used-cars, insurance claims, home sale, trade tariffs, a TV game show, eBay, and auto-rickshaws. These even-split offers are more likely to be accepted, less likely to spur exit by the opponent, and more likely to be followed by subsequent split-the-difference offers if bargaining continues. We propose several theoretical frameworks to explain this behavior, including an inference argument under which split-the-difference offers can be viewed as an equal split of the potential surplus.