IDEAS home Printed from https://ideas.repec.org/a/ebl/ecbull/eb-05c70036.html
   My bibliography  Save this article

Opting Out in a War of Attrition

Author

Listed:
  • Mercedes Adamuz

    (Department of Business, Instituto Tecnológico Autónomo de México and Department of Economics, Universitat Autònoma de Barcelona)

Abstract

This paper analyzes a War of Attrition where players enjoy private information about their outside opportunities. The main message is that uncertainty about the possibility that the opponent opts out increases the equilibrium probability of concession.

Suggested Citation

  • Mercedes Adamuz, 2005. "Opting Out in a War of Attrition," Economics Bulletin, AccessEcon, vol. 3(49), pages 1-6.
    • Handle: RePEc:ebl:ecbull:eb-05c70036
    as

    Download full text from publisher

    File URL: http://www.accessecon.com/pubs/EB/2005/Volume3/EB-05C70036A.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Avner Shaked, 1994. "Opting out: bazaars versus "hi tech" markets," Investigaciones Economicas, Fundación SEPI, vol. 18(3), pages 421-432, September.
    2. Vislie, Jon, 1988. "Equilibrium in a market with sequential bargaining and random outside options," Economics Letters, Elsevier, vol. 26(4), pages 325-328.
    3. Shaked, Avner & Sutton, John, 1984. "Involuntary Unemployment as a Perfect Equilibrium in a Bargaining Model," Econometrica, Econometric Society, vol. 52(6), pages 1351-1364, November.
    4. Clara Ponsatí & József Sákovics, 2001. "Randomly available outside options in bargaining," Spanish Economic Review, Springer;Spanish Economic Association, vol. 3(4), pages 231-252.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Clara Ponsatí & József Sákovics, 2001. "Randomly available outside options in bargaining," Spanish Economic Review, Springer;Spanish Economic Association, vol. 3(4), pages 231-252.
    2. repec:ebl:ecbull:v:3:y:2005:i:49:p:1-6 is not listed on IDEAS
    3. Juan Vidal-Puga, 2005. "Reinterpreting the meaning of breakdown," Game Theory and Information 0501004, University Library of Munich, Germany.
    4. Ponsati Clara, 2004. "Search and Bargaining in Large Markets With Homogeneous Traders," The B.E. Journal of Theoretical Economics, De Gruyter, vol. 4(1), pages 1-27, February.
    5. Mitsutoshi M. Adachi, 1998. "A note on frictions in the Bazaar type bargaining game," Investigaciones Economicas, Fundación SEPI, vol. 22(2), pages 293-304, May.
    6. May, Frank Christian & Münster, Johannes, 2013. "Centralized Bargaining in Press Wholesale," VfS Annual Conference 2013 (Duesseldorf): Competition Policy and Regulation in a Global Economic Order 79984, Verein für Socialpolitik / German Economic Association.
    7. repec:eee:labchp:v:3:y:1999:i:pb:p:2291-2372 is not listed on IDEAS
    8. María Mercedes Adamuz & Clara Ponsatí, 2009. "Arbitration systems and negotiations," Review of Economic Design, Springer;Society for Economic Design, vol. 13(3), pages 279-303, September.
    9. Thomas, Charles J., 2018. "An alternating-offers model of multilateral negotiations," Journal of Economic Behavior & Organization, Elsevier, vol. 149(C), pages 269-293.
    10. Fengjiao Chen & Chiu Yu Ko & Duozhe Li, 2018. "On the role of outside options in wage renegotiation," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 27(4), pages 792-803, October.
    11. Adachi, Mitsutoshi M., 1999. "On the choice of pricing policies: Ex ante commitment and prisoners' dilemma," European Economic Review, Elsevier, vol. 43(9), pages 1647-1663, October.
    12. Manzini, Paola & Mariotti, Marco, 2005. "Alliances and negotiations," Journal of Economic Theory, Elsevier, vol. 121(1), pages 128-141, March.
    13. Américo Mendes, 2005. "A Game Theoretical Model of Land Contract Choice," Game Theory and Information 0503001, University Library of Munich, Germany.
    14. Bester, Helmut, 2013. "Investments and the holdup problem in a matching market," Journal of Mathematical Economics, Elsevier, vol. 49(4), pages 302-311.
    15. Agnieszka Rusinowska & Ahmet Ozkardas, 2015. "On equilibrium payoffs in wage bargaining with discount rates varying in time," Economic Theory Bulletin, Springer;Society for the Advancement of Economic Theory (SAET), vol. 3(2), pages 181-199, October.
    16. Qian, Dong & Guo, Ju’e, 2014. "Research on the energy-saving and revenue sharing strategy of ESCOs under the uncertainty of the value of Energy Performance Contracting Projects," Energy Policy, Elsevier, vol. 73(C), pages 710-721.
    17. Okada, Akira, 2011. "Coalitional bargaining games with random proposers: Theory and application," Games and Economic Behavior, Elsevier, vol. 73(1), pages 227-235, September.
    18. Send, Jonas & Serena, Marco, 2022. "An empirical analysis of insistent bargaining," Journal of Economic Psychology, Elsevier, vol. 90(C).
    19. Teyssiere, Gilles, 1995. "Matching processes in the labour market an econometric study," Labour Economics, Elsevier, vol. 2(4), pages 421-435, December.
    20. Christian Ewerhart, 2006. "The Effect of Sunk Costs on the Outcome of Alternating-Offers Bargaining Between Inequity-Averse Agents," Schmalenbach Business Review (sbr), LMU Munich School of Management, vol. 58(2), pages 184-203, April.
    21. Quan Wen, 2002. "Repeated Games with Asynchronous Moves," Vanderbilt University Department of Economics Working Papers 0204, Vanderbilt University Department of Economics.
    22. Ay?egül ?ahin & Joseph Song & Giorgio Topa & Giovanni L. Violante, 2014. "Mismatch Unemployment," American Economic Review, American Economic Association, vol. 104(11), pages 3529-3564, November.

    More about this item

    JEL classification:

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

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ebl:ecbull:eb-05c70036. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: John P. Conley (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.