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According to this chart the Monster Power levels give a bonus to experience.

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There is also experience of fighting monsters of a higher level than you. Which experience bonus gets applied first or is it cumulative?

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    Since it's percentage based, I suspect the percentages are added together, and then straight +XP is added on top of that. – Frank Oct 19 '12 at 20:07
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    @fbueckert that's exactly what it does. If you look at your character panel while in game, you'll see your bonus experience is increased by the MP level along with whatever other experience bonuses you have (ruby in helmet, hellfire ring, etc) You should post it as the answer – l I Oct 21 '12 at 19:26
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An updated to this post, since it not accurate anymore:

As of 1.0.7, the experience bonus gained from Monter Power level as been change to the following and everything is additive:

  • MP 1: 25% (up from 10%)
  • MP 2: 50% (up from 20%)
  • MP 3: 80% (up from 30%)
  • MP 4: 120%(up from 45%)
  • MP 5: 165% (up from 60%)
  • MP 6: 215% (up from 75%)
  • MP 7: 275% (up from 95%)
  • MP 8: 340% (up from 115%)
  • MP 9: 420% (up from 135%
  • MP 10: 510% (up from 160%)

Source

For the next patch 1.0.8, Blizzard said Valor Stacks will be multiplicative, like the 10% bonus gained for every other players in a multiplayer game (hence limited to 30%):

Also, just reiterating what others have said, Nephalem Valor stacks are now multiplicative, not additive. The simple calculation is: [ 100%(base) + bonus from MP + helm ruby + ring] * [1 + Up to 0.75 from NV + Up to 0.30 for multiplayer]

Source

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Experience bonuses are always additive, that is, if you are playing on MP5 (+60%) with a radiant star ruby in your helmet (+31%) and a hellfire ring of +35%, you gain 226% (=100%+60%+31%+35%) experience of the experience when playing on MP0 without ruby or ring.

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