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Revocable Commitment and Sequential Bargaining

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  • Muthoo, Abhinay

Abstract

In this paper, the author presents a noncompetitive bargaining model which unifies the two well-known but distinct bargaining games due to J. Nash (1953) and A. Rubinstein (1982). Moreover, the author explores the robustness of the equilibrium set of these two bargaining games to a particular kind of perturbation in the commitment structure of the underlying extensive forms. From a different perspective and interpretation of the model, the author examines and studies the relationship between the equilibrium commitment levels and the costs to the bargainers of revoking their respective commitments. Copyright 1992 by Royal Economic Society.

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Bibliographic Info

Article provided by Royal Economic Society in its journal The Economic Journal.

Volume (Year): 102 (1992)
Issue (Month): 411 (March)
Pages: 378-87

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Handle: RePEc:ecj:econjl:v:102:y:1992:i:411:p:378-87

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Cited by:
  1. Mehrdad Vahabi, 2009. "A Critical Review of Strategic Conflict Theory and Socio-political Instability Models," Revue d'économie politique, Dalloz, vol. 0(6), pages 817-858.
  2. Gersbach, Hans & Schneider, Maik T., 2012. "Tax contracts, party bargaining, and government formation," Mathematical Social Sciences, Elsevier, vol. 64(2), pages 173-192.
  3. Schotter, Andrew & Snyder, Blaine & Zheng, Wei, 1995. "Bargaining Through Agents: An Experimental Study of Delegation and Commitment," Working Papers 95-27, C.V. Starr Center for Applied Economics, New York University.
  4. Helmut Bester & Jozsef Sakovics, 2004. "Delegated Bargaining and Renegotiation," ESE Discussion Papers 61, Edinburgh School of Economics, University of Edinburgh.
  5. Juan Vidal-Puga, 2003. "Bargaining with commitments," Game Theory and Information 0306002, EconWPA.
  6. Harold Houba, 2006. "Computing Alternating Offers and Water Prices in Bilateral River Basin Management," Tinbergen Institute Discussion Papers 06-095/1, Tinbergen Institute.
  7. Klaus Ritzberger, 1992. "On the non-cooperative foundations of cooperative bargaining," Working Papers. Serie AD 1992-06, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
  8. Manzini, Paola, 1997. "Strategic wage bargaining with destructive power: the role of commitment," Economics Letters, Elsevier, vol. 54(1), pages 15-22, January.
  9. Amoros, Pablo & Moreno, Bernardo, 2006. "Bargaining and waning commitments," Economics Letters, Elsevier, vol. 92(3), pages 417-422, September.
  10. Britz, Volker, 2013. "Optimal value commitment in bilateral bargaining," Games and Economic Behavior, Elsevier, vol. 77(1), pages 345-351.
  11. repec:dgr:uvatin:2006095 is not listed on IDEAS
  12. repec:dgr:umamet:2010013 is not listed on IDEAS
  13. repec:dgr:uvatin:2026095 is not listed on IDEAS

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