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Immediate Agreement in Interdependent Bilateral Bargaining

Author

Listed:
  • Björnerstedt, Jonas

    (Swedish Competition Authority)

  • Stennek, Johan

    (Research Institute of Industrial Economics)

Abstract

This note provides sufficient conditions for immediate agreement in an extensive form model of interdependent bilateral bargaining. The model is suggested by Björnerstedt and Stennek (2006) as a work horse for studying bilateral oligopoly. The key feature of this model is that the firms are represented by separate agents in all negotiations in which they are involved. There is immediate agreement in equilibrium, essentially if production is strictly convex or if the agents use Markov strategies.

Suggested Citation

  • Björnerstedt, Jonas & Stennek, Johan, 2007. "Immediate Agreement in Interdependent Bilateral Bargaining," Working Paper Series 692, Research Institute of Industrial Economics.
    • Handle: RePEc:hhs:iuiwop:0692
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    Cited by:

    1. Bjornerstedt, Jonas & Stennek, Johan, 2007. "Bilateral oligopoly -- The efficiency of intermediate goods markets," International Journal of Industrial Organization, Elsevier, vol. 25(5), pages 884-907, October.

    More about this item

    Keywords

    Bilateral Oligopoly; Intermediate Goods; Bargaining; Market Network; Trade Link;
    All these keywords.

    JEL classification:

    • C70 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - General
    • D20 - Microeconomics - - Production and Organizations - - - General
    • D40 - Microeconomics - - Market Structure, Pricing, and Design - - - General
    • L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General
    • L40 - Industrial Organization - - Antitrust Issues and Policies - - - General

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