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Bargaining order in multilateral bargaining with imperfect compliments

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  • Maurya, Amit Kumar

Abstract

Using a sequential model of multilateral bargaining involving one buyer and two sellers, who are selling objects which are imperfect compliments for the buyer, we analyse buyer’s preferred bargaining order i.e. whether the buyer prefers to buy higher valuation object first or second. For a narrow range of parameters, where players are patient enough and objects exhibit high degree of complimentarity, multiple equilibria exist such that both the bargaining orders are preferred. For rest of the range, which is relatively much larger, buyer prefers to buy higher valuation object first.

Suggested Citation

  • Maurya, Amit Kumar, 2018. "Bargaining order in multilateral bargaining with imperfect compliments," MPRA Paper 89583, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:89583
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    References listed on IDEAS

    as
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    4. John Sutton, 1986. "Non-Cooperative Bargaining Theory: An Introduction," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 53(5), pages 709-724.
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    7. Cai, Hongbin, 2000. "Delay in Multilateral Bargaining under Complete Information," Journal of Economic Theory, Elsevier, vol. 93(2), pages 260-276, August.
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    More about this item

    Keywords

    Key words: Multilateral bargaining; Bargaining order; Imperfect compliments;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory

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