IDEAS home Printed from https://ideas.repec.org/a/oup/restud/v71y2004i3p855-881.html
   My bibliography  Save this article

Fooling All of the People Some of the Time: A Theory of Endogenous Sequencing in Confidential Negotiations

Author

Listed:
  • Thomas H. Noe
  • Jun Wang

Abstract

We analyse a bargaining game in which one party, called the buyer, has the option of choosing the sequence of negotiations with other participants, called sellers. When the sequencing of negotiations is confidential and the sellers' goods are highly complementary, efficient, non-dissipative equilibria exist in which the buyer randomizes over negotiation sequences. In these equilibria, the buyer can obtain higher pay-offs than in pure strategy equilibria or in public negotiations. The degree of sequencing uncertainty that maximizes buyer pay-offs is inversely related to the aggregate bargaining power of the sellers. Copyright 2004, Wiley-Blackwell.

Suggested Citation

  • Thomas H. Noe & Jun Wang, 2004. "Fooling All of the People Some of the Time: A Theory of Endogenous Sequencing in Confidential Negotiations," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 71(3), pages 855-881.
    • Handle: RePEc:oup:restud:v:71:y:2004:i:3:p:855-881
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1111/j.1467-937X.2004.00307.x
    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. Silvana Krasteva & Huseyin Yildirim, 2011. "Payoff Uncertainty, Bargaining Power, and the Strategic Sequencing of Bilateral Negotiations," Levine's Working Paper Archive 786969000000000208, David K. Levine.
    2. Armstrong, Mark & Zhou, Jidong, 2010. "Exploding offers and buy-now discounts," MPRA Paper 22531, University Library of Munich, Germany.
    3. Xiao, Jun, 2018. "Bargaining orders in a multi-person bargaining game," Games and Economic Behavior, Elsevier, vol. 107(C), pages 364-379.
    4. Johannes Münster & Markus Reisinger, 2021. "Sequencing Bilateral Negotiations with Externalities," ECONtribute Discussion Papers Series 096, University of Bonn and University of Cologne, Germany.
    5. Chen, Ying & Zápal, Jan, 2022. "Sequential vote buying," Journal of Economic Theory, Elsevier, vol. 205(C).
    6. Clark, Derek J. & Pereau, Jean Christophe, 2009. "Fragmented property rights and royalty bargaining," Journal of Economic Behavior & Organization, Elsevier, vol. 72(1), pages 546-553, October.
    7. Uyanik, Metin & Yengin, Duygu, 2023. "Expropriation power in private dealings: Quota rule in collective sales," Games and Economic Behavior, Elsevier, vol. 141(C), pages 548-580.
    8. Thomas Hellmann, 2007. "Entrepreneurs and the Process of Obtaining Resources," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 16(1), pages 81-109, March.
    9. Montez, João, 2014. "One-to-many bargaining when pairwise agreements are non-renegotiable," Journal of Economic Theory, Elsevier, vol. 152(C), pages 249-265.
    10. Göller, Daniel & Hewer, Michael, 2015. "Breakdown in multilateral negotiations," Journal of Economic Theory, Elsevier, vol. 157(C), pages 478-484.
    11. Gao, Hong & Xu, Haibo, 2021. "Multilateral bargaining with an endogenously determined procedure," Economics Letters, Elsevier, vol. 209(C).
    12. Pancs, Romans, 2013. "Sequential negotiations with costly information acquisition," Games and Economic Behavior, Elsevier, vol. 82(C), pages 522-543.
    13. Vincent Mak & Rami Zwick, 2024. "Fairness and Transparency in One-to-Many Bargaining with Complementarity: An Experimental Study," Games, MDPI, vol. 15(4), pages 1-29, June.
    14. Chiu Yu Ko & Duozhe Li, 2020. "Decentralized One‐To‐Many Bargaining," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 61(3), pages 1139-1172, August.
    15. Krasteva, Silvana & Yildirim, Huseyin, 2012. "On the role of confidentiality and deadlines in bilateral negotiations," Games and Economic Behavior, Elsevier, vol. 75(2), pages 714-730.
    16. Jun Xiao, 2012. "Bargaining Order in a Multi-Person Bargaining Game," Department of Economics - Working Papers Series 1150, The University of Melbourne.
    17. Clark Derek J & Pereau Jean-Christophe, 2008. "Passing the Buck in Sequential Negotiation," The B.E. Journal of Theoretical Economics, De Gruyter, vol. 8(1), pages 1-18, December.

    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:71:y:2004:i:3:p:855-881. 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.