Uncertainty about Uncertainty and Delay in Bargaining
AbstractWe study a one-sided offers bargaining game in which the buyer has private information about the value of the object and the seller has private information about his beliefs about the buyer's valuation. We show that this uncertainty about uncertainties dramatically changes the set of outcomes. In particular, second order beliefs can lead to a delay in reaching agreement even when the seller makes frequent offers. We show that not all types of second order beliefs lead to a delay. When the buyer assigns positive probability to the seller knowing the buyer's value, then delay not only can occur, but it must occur for a class of equilibria. However, in all other cases delay will never occur. Copyright The Econometric Society 2005.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Econometric Society in its journal Econometrica.
Volume (Year): 73 (2005)
Issue (Month): 1 (01)
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Jonathan Weinstein & Muhamet Yildiz, 2004. "Finite-Order Implications of Any Equilibrium," Levine's Working Paper Archive 122247000000000065, David K. Levine.
- Stephen Morris & Hanming Fang, 2004.
"Multidimensional Private Value Auctions,"
Yale School of Management Working Papers
ysm387, Yale School of Management.
- Hanming Fang & Stephen Morris, 2003. "Multidimensional Private Value Auctions," Cowles Foundation Discussion Papers 1423, Cowles Foundation for Research in Economics, Yale University.
- Hanming Fang, 2004. "Multidimensional Private Value Auctions," Theory workshop papers 121473000000000021, UCLA Department of Economics.
- Stephen Morris & Hanming Fang, 2004. "Multidimensional Private Value Auctions," Econometric Society 2004 North American Winter Meetings 174, Econometric Society.
- Juan Vidal-Puga, 2005.
"Reinterpreting the meaning of breakdown,"
Game Theory and Information
- Rong, Kang, 2013. "Impact of second-order uncertainty on the efficiency of the 0.5-double auction," Mathematical Social Sciences, Elsevier, vol. 65(1), pages 67-71.
- Dang, Tri Vi, 2008. "Bargaining with endogenous information," Journal of Economic Theory, Elsevier, vol. 140(1), pages 339-354, May.
- Muhamet Yildiz & Jonathan Weinsten, 2004.
"Impact of higher-order uncertainty,"
Econometric Society 2004 North American Winter Meetings
157, Econometric Society.
- Plambeck, Erica L. & Taylor, Terry A., 2004. "Implications of Breach Remedy and Renegotiation for Design of Supply Contracts," Research Papers 1888, Stanford University, Graduate School of Business.
- Juan Vidal-Puga, 2008. "Delay in the alternating-offers model of bargaining," International Journal of Game Theory, Springer, vol. 37(4), pages 457-474, December.
- Srihari Govindan & Robert Wilson, 2009.
"On Forward Induction,"
Econometric Society, vol. 77(1), pages 1-28, 01.
- Srihari Govindan & Robert Wilson, 2007. "'On Forward Induction," Levine's Working Paper Archive 321307000000000825, David K. Levine.
- Wilson, Robert B. & Govindan, Srihari, 2007. "On Forward Induction," Research Papers 1955, Stanford University, Graduate School of Business.
- Srihari Govindan & Robert Wilson, 2007. "On Forward Induction," Levine's Bibliography 321307000000000788, UCLA Department of Economics.
- Srihari Govindan & Robert Wilson, 2008. "On Forward Induction," Levine's Working Paper Archive 122247000000001859, David K. Levine.
- Srihari Govindan & Robert Wilson, 2006. "On Forward Induction," Levine's Working Paper Archive 321307000000000618, David K. Levine.
- Ortner, Juan, 2013. "Optimism, delay and (in)efficiency in a stochastic model of bargaining," Games and Economic Behavior, Elsevier, vol. 77(1), pages 352-366.
- In-Koo Cho, 2007. "Perishable Durable Goods," Economics Working Papers 0077, Institute for Advanced Study, School of Social Science.
- Leonardo Rezende & In-Koo Cho, 2007. "Perishable Durable Goods," 2007 Meeting Papers 453, Society for Economic Dynamics.
- Li, Ming, 2002.
"Information collection in bargaining,"
11108, University Library of Munich, Germany, revised Mar 2007.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley-Blackwell Digital Licensing) or (Christopher F. Baum).
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 references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.