IDEAS home Printed from https://ideas.repec.org/p/cwl/cwldpp/551.html
   My bibliography  Save this paper

Incentive Arbitration and Time-Related Bargaining Costs

Author

Listed:
  • Zvi A. Livne

Abstract

In the context of the Nash Bargaining Problem an arbitrator is supposed to choose a solution point on the basis of 'fairness' requirements. By introducing time-related costs to the parties' utility functions, a new class of arbitration changes the rules of the negotiations, and particularly the parties' payoffs, and lets the parties negotiate. The changes are such that one or both parties are reimbursed by the arbitrator for their bargaining costs. A procedure in which only the party who makes the final concession is compensated, leads (in the case of complete information) to single dominating equilibrium strategies and to a unique solution. This solution can also serve as an arbitration point in the traditional sense.

Suggested Citation

  • Zvi A. Livne, 1981. "Incentive Arbitration and Time-Related Bargaining Costs," Cowles Foundation Discussion Papers 551, Cowles Foundation for Research in Economics, Yale University.
    • Handle: RePEc:cwl:cwldpp:551
    as

    Download full text from publisher

    File URL: https://cowles.yale.edu/sites/default/files/files/pub/d05/d0551.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Nash, John, 1950. "The Bargaining Problem," Econometrica, Econometric Society, vol. 18(2), pages 155-162, April.
    2. Ehud Kalai & Robert W. Rosenthal, 1976. "Arbitration of Two-Party Disputes Under Ignorance," Discussion Papers 215, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Eyal Winter & Oscar Volij & Nir Dagan, 2002. "A characterization of the Nash bargaining solution," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 19(4), pages 811-823.
    2. Gibbons, Robert, 1988. "Learning in Equilibrium Models of Arbitration," American Economic Review, American Economic Association, vol. 78(5), pages 896-912, December.
    3. Maurizio Zanardi, 2004. "Antidumping law as a collusive device," Canadian Journal of Economics, Canadian Economics Association, vol. 37(1), pages 95-122, February.
    4. M. Hinojosa & A. Mármol & J. Zarzuelo, 2008. "Inequality averse multi-utilitarian bargaining solutions," International Journal of Game Theory, Springer;Game Theory Society, vol. 37(4), pages 597-618, December.
    5. Matsui, Kenji, 2020. "Optimal bargaining timing of a wholesale price for a manufacturer with a retailer in a dual-channel supply chain," European Journal of Operational Research, Elsevier, vol. 287(1), pages 225-236.
    6. Simon G�chter & Arno Riedl, "undated". "Moral Property Rights in Bargaining," IEW - Working Papers 113, Institute for Empirical Research in Economics - University of Zurich.
    7. H Peyton Young, 2014. "The Evolution of Social Norms," Economics Series Working Papers 726, University of Oxford, Department of Economics.
    8. Erkki Koskela & Ronnie Schöb, 2002. "Alleviating Unemployment: The Case for Green Tax Reforms," Chapters, in: Lawrence H. Goulder (ed.), Environmental Policy Making in Economies with Prior Tax Distortions, chapter 20, pages 355-378, Edward Elgar Publishing.
    9. Magni, Carlo Alberto, 2009. "Splitting up value: A critical review of residual income theories," European Journal of Operational Research, Elsevier, vol. 198(1), pages 1-22, October.
    10. Stefano Vannucci, 2015. "La teoria dei giochi e John Nash," Department of Economics University of Siena 722, Department of Economics, University of Siena.
    11. Roland Kirstein & Matthias Peiss, 2013. "Quantitative Machtkonzepte in der Ökonomik," FEMM Working Papers 130004, Otto-von-Guericke University Magdeburg, Faculty of Economics and Management.
    12. Michael Carter & Julian Wright, 1999. "Interconnection in Network Industries," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 14(1), pages 1-25, February.
    13. Laruelle, Annick & Valenciano, Federico, 2008. "Noncooperative foundations of bargaining power in committees and the Shapley-Shubik index," Games and Economic Behavior, Elsevier, vol. 63(1), pages 341-353, May.
    14. Thomas M. Humphrey, 1996. "The early history of the box diagram," Economic Quarterly, Federal Reserve Bank of Richmond, issue Win, pages 37-75.
    15. Omer F. Baris, 2018. "Timing effect in bargaining and ex ante efficiency of the relative utilitarian solution," Theory and Decision, Springer, vol. 84(4), pages 547-556, June.
    16. Izat B. Baybusinov & Enrico Maria Fenoaltea & Yi-Cheng Zhang, 2022. "Negotiation problem," Papers 2201.12619, arXiv.org.
    17. Bergantiños, Gustavo & Moreno-Ternero, Juan D., 2022. "Monotonicity in sharing the revenues from broadcasting sports leagues," European Journal of Operational Research, Elsevier, vol. 297(1), pages 338-346.
    18. Yoshihara, Naoki, 2003. "Characterizations of bargaining solutions in production economies with unequal skills," Journal of Economic Theory, Elsevier, vol. 108(2), pages 256-285, February.
    19. Yan, Ruiliang & Wang, John & Zhou, Bin, 2010. "Channel integration and profit sharing in the dynamics of multi-channel firms," Journal of Retailing and Consumer Services, Elsevier, vol. 17(5), pages 430-440.
    20. S. S. Askar & A. Al-khedhairi, 2019. "Analysis of a Four-Firm Competition Based on a Generalized Bounded Rationality and Different Mechanisms," Complexity, Hindawi, vol. 2019, pages 1-12, May.

    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:cwl:cwldpp:551. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: Brittany Ladd (email available below). General contact details of provider: https://edirc.repec.org/data/cowleus.html .

    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.