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A One-Period Version of Rubinstein's Bargaining Game

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Author Info
Robert Evans (St John's College, Cambridge, UK)
Abstract

A one-period, simultaneous-offers bargaining game is analyzed in which, for each player, there is a small probability that his or her proposal will not reach the other player. The unique pure strategy equilibrium offers are identical to those of the Rubinstein (1982) infinite-horizon, alternating-offers bargaining game. This provides a novel interpretation of Rubinstein's result, as well as a new non-cooperative implementation of the Nash Bargaining Solution.

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Publisher Info
Article provided by Berkeley Electronic Press in its journal Contributions to Theoretical Economics.

Volume (Year): 3 (2003)
Issue (Month): 1 ()
Pages: 1066-1066
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Handle: RePEc:bep:thecon:v:3:y:2003:i:1:p:1066-1066

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Related research
Keywords: Rubinstein bargaining simultaneous offers Nash bargaining solution

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Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

  1. Ken Binmore & Ariel Rubinstein & Asher Wolinsky, 1986. "The Nash Bargaining Solution in Economic Modelling," RAND Journal of Economics, The RAND Corporation, vol. 17(2), pages 176-188, Summer. [Downloadable!] (restricted)
  2. Nash, John, 1953. "Two-Person Cooperative Games," Econometrica, Econometric Society, vol. 21(1), pages 128-140, April. [Downloadable!] (restricted)
  3. Aumann, Robert J & Kurz, Mordecai, 1977. "Power and Taxes," Econometrica, Econometric Society, vol. 45(5), pages 1137-61, July. [Downloadable!] (restricted)
  4. Carlsson, Hans, 1991. "A Bargaining Model Where Parties Make Errors," Econometrica, Econometric Society, vol. 59(5), pages 1487-96, September. [Downloadable!] (restricted)
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