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Representation in Multi-Issue Delegated Bargaining

Author

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  • Chakravorty Shourjo

    (Department of Economics, Istanbul Technical University, Istanbul, Turkey)

Abstract

Delegated bargaining over multiple issues of varying sizes is a frequent occurrence and happens during such contexts as real estate sales and political representation. Past work has shown that while simultaneously bargaining over two issues, it is in the best interest of an individual to choose a representative with identical preferences as herself. By allowing the sizes of the two issues to vary, this paper uses a two-issue, two-player Rubinstein bargaining game to show that an individual is best served by selecting a representative whose preferences closest resemble her bargaining rival’s preferences. It is also found that in some instances depending on the size of the issues the individual will be indifferent when choosing between a representative with identical preferences and another with different preferences to bargain on her behalf.

Suggested Citation

  • Chakravorty Shourjo, 2019. "Representation in Multi-Issue Delegated Bargaining," The B.E. Journal of Theoretical Economics, De Gruyter, vol. 19(1), pages 1-12, January.
    • Handle: RePEc:bpj:bejtec:v:19:y:2019:i:1:p:12:n:17
    DOI: 10.1515/bejte-2017-0100
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    References listed on IDEAS

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    Cited by:

    1. Zhongwei Feng & Chunqiao Tan & Jinchun Zhang & Qiang Zeng, 2021. "Bargaining Game with Altruistic and Spiteful Preferences," Group Decision and Negotiation, Springer, vol. 30(2), pages 277-300, April.

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    More about this item

    Keywords

    delegated bargaining; multi-issue bargaining; simultaneous bargaining;
    All these keywords.

    JEL classification:

    • C7 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory

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