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Alternating-offer bargaining with endogenous commitment

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  • Yu, Zhixian

Abstract

We revisit the classical alternating-offer bargaining model, further assuming that players cannot reduce their proposals during the game. In equilibrium, players have history-dependent strategies and do not necessarily reach an agreement immediately in the first stage.

Suggested Citation

  • Yu, Zhixian, 2020. "Alternating-offer bargaining with endogenous commitment," Economics Letters, Elsevier, vol. 192(C).
    • Handle: RePEc:eee:ecolet:v:192:y:2020:i:c:s0165176520301713
    DOI: 10.1016/j.econlet.2020.109247
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    References listed on IDEAS

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    1. Rubinstein, Ariel, 1982. "Perfect Equilibrium in a Bargaining Model," Econometrica, Econometric Society, vol. 50(1), pages 97-109, January.
    2. Anat R. Admati & Motty Perry, 1991. "Joint Projects without Commitment," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 58(2), pages 259-276.
    3. Driesen, Bram & Perea, Andrés & Peters, Hans, 2012. "Alternating offers bargaining with loss aversion," Mathematical Social Sciences, Elsevier, vol. 64(2), pages 103-118.
    4. Fershtman Chaim & Seidmann Daniel J., 1993. "Deadline Effects and Inefficient Delay in Bargaining with Endogenous Commitment," Journal of Economic Theory, Elsevier, vol. 60(2), pages 306-321, August.
    5. Li, Duozhe, 2007. "Bargaining with history-dependent preferences," Journal of Economic Theory, Elsevier, vol. 136(1), pages 695-708, September.
    6. Jesse A. Schwartz & Quan Wen, 2007. "Wage Negotiation Under Good Faith Bargaining," International Game Theory Review (IGTR), World Scientific Publishing Co. Pte. Ltd., vol. 9(03), pages 551-564.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Bargaining; Endogenous commitment; Alternating-offer bargaining game; History-dependence;
    All these keywords.

    JEL classification:

    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory

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