IDEAS home Printed from https://ideas.repec.org/a/oup/restud/v67y2000i2p309-326..html
   My bibliography  Save this article

The Scope of Anonymous Voluntary Bargaining Under Asymmetric Information

Author

Listed:
  • Ehud Lehrer
  • Zvika Neeman

Abstract

We present a model of anonymous collective bargaining where individuals' preferences and information may be significantly interdependent. We show that the bargaining outcome becomes independent of individuals' preferences and information as the bargaining group increases in size. As a corollary, we show that anonymous voluntary bargaining completely fails in large groups. Either the difference between the bargaining outcome and the status quo vanishes as the size of the group becomes larger, or, the bargaining becomes coercive and results in a violation of at least some individuals' rights. The result provides a rationale for the inherent difficulty of reform in the presence of asymmetric information. "There is nothing more difficult to carry out, nor more doubtful of success, nor more dangerous to handle, than to initiate a new order of things." Niccolò Machiavelli, The Prince (1532)

Suggested Citation

  • Ehud Lehrer & Zvika Neeman, 2000. "The Scope of Anonymous Voluntary Bargaining Under Asymmetric Information," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 67(2), pages 309-326.
    • Handle: RePEc:oup:restud:v:67:y:2000:i:2:p:309-326.
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1111/1467-937X.00133
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Grüner, Hans Peter & Koriyama, Yukio, 2012. "Public goods, participation constraints, and democracy: A possibility theorem," Games and Economic Behavior, Elsevier, vol. 75(1), pages 152-167.
    2. Stefan Behringer, 2005. "The Provision of a Public Good with a direct Provision Technology and Large Number of Agents," JEPS Working Papers 05-007, JEPS.
    3. Birulin, Oleksii, 2006. "Public goods with congestion," Journal of Economic Theory, Elsevier, vol. 129(1), pages 289-299, July.
    4. Rubinchik, Anna & Wang, Ruqu, 2008. "A note on redistributive fairness and economic reform," Journal of Development Economics, Elsevier, vol. 86(2), pages 447-452, June.

    More about this item

    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:oup:restud:v:67:y:2000:i:2:p:309-326.. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Oxford University Press (email available below). General contact details of provider: https://academic.oup.com/restud .

    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.