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Public offers in the market for lemons with large discounting

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  • Kim, Kyungmin

Abstract

I show that bargaining impasse in Hörner and Vieille (2009) can be interpreted as the limit of bargaining delay: the maximal duration of the game increases unboundedly as the seller’s discount factor approaches the threshold level above which bargaining impasse occurs.

Suggested Citation

  • Kim, Kyungmin, 2015. "Public offers in the market for lemons with large discounting," Economics Letters, Elsevier, vol. 130(C), pages 63-65.
    • Handle: RePEc:eee:ecolet:v:130:y:2015:i:c:p:63-65
    DOI: 10.1016/j.econlet.2015.03.001
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    References listed on IDEAS

    as
    1. Johannes Hörner & Nicolas Vieille, 2009. "Public vs. Private Offers in the Market for Lemons," Econometrica, Econometric Society, vol. 77(1), pages 29-69, January.
    2. Robert Evans, 1989. "Sequential Bargaining with Correlated Values," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 56(4), pages 499-510.
    3. Raymond Deneckere & Meng-Yu Liang, 2006. "Bargaining with Interdependent Values," Econometrica, Econometric Society, vol. 74(5), pages 1309-1364, September.
    4. Gul, Faruk & Sonnenschein, Hugo & Wilson, Robert, 1986. "Foundations of dynamic monopoly and the coase conjecture," Journal of Economic Theory, Elsevier, vol. 39(1), pages 155-190, June.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Kim, Kyungmin, 2017. "Information about sellers' past behavior in the market for lemons," Journal of Economic Theory, Elsevier, vol. 169(C), pages 365-399.
    2. Hwang, Ilwoo, 2018. "A theory of bargaining deadlock," Games and Economic Behavior, Elsevier, vol. 109(C), pages 501-522.
    3. Heng Liu, 2020. "Deadlines in the market for lemons," Economic Theory Bulletin, Springer;Society for the Advancement of Economic Theory (SAET), vol. 8(2), pages 305-323, October.

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    More about this item

    Keywords

    Bargaining with interdependent values; Public offers; The market for lemons;
    All these keywords.

    JEL classification:

    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness

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