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Bargaining with endogenous deadlines

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  • MAULEON, Ana
  • VANNETELBOSCH, Vincent J.

Abstract

We develop a two-person negotiation model with complete information which makes endogenous both the deadline and the level of surplus destruction after the deadline. We show that the equilibrium outcome is always unique but might be inefficient. Moreover, as the bargaining period becomes short or as the players become very patient, the unique outcome is always inefficient
(This abstract was borrowed from another version of this item.)
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • MAULEON, Ana & VANNETELBOSCH, Vincent J., 2004. "Bargaining with endogenous deadlines," LIDAM Reprints CORE 1719, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    • Handle: RePEc:cor:louvrp:1719
    Note: In : Journal of Economic Behavior & Organization, 54, 321-335, 2004
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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. Vincent Vannetelbosch, 1999. "Alternating-Offer Bargaining and Common Knowledge of Rationality," Theory and Decision, Springer, vol. 47(2), pages 111-138, October.
    3. Vincent J. Vannetelbosch & P. Jean-Jacques Herings, 2000. "The equivalence of the Dekel-Fudenberg iterative procedure and weakly perfect rationalizability," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 15(3), pages 677-687.
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    8. Vincent J. Vannetelbosch & P. Jean-Jacques Herings, 1999. "Refinements of rationalizability for normal-form games," International Journal of Game Theory, Springer;Game Theory Society, vol. 28(1), pages 53-68.
    9. Vincent J. Vannetelbosch, 1999. "Rationalizability and equilibrium in N-person sequential bargaining," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 14(2), pages 353-371.
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    15. Fisher, Timothy C G, 2001. "An Asymmetric Information Model for Lockouts," Bulletin of Economic Research, Wiley Blackwell, vol. 53(2), pages 153-159, April.
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    17. 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.
    18. Joel Watson, 1998. "Alternating-Offer Bargaining with Two-Sided Incomplete Information," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 65(3), pages 573-594.
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    Cited by:

    1. Juan Vidal-Puga, 2005. "Reinterpreting the meaning of breakdown," Game Theory and Information 0501004, University Library of Munich, Germany.
    2. Juan Vidal-Puga, 2008. "Delay in the alternating-offers model of bargaining," International Journal of Game Theory, Springer;Game Theory Society, vol. 37(4), pages 457-474, December.

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    More about this item

    JEL classification:

    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
    • J50 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - General
    • J52 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Dispute Resolution: Strikes, Arbitration, and Mediation

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