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Strategic wage bargaining with destructive power: the role of commitment

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  • Manzini, Paola

Abstract

We built a simple alternating offers bargaining model in which one of the players can commit to damage the "pie" they are bargaining over. The unique equilibrium partition his share does not vary monotonically with the discount factor.

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Bibliographic Info

Article provided by Elsevier in its journal Economics Letters.

Volume (Year): 54 (1997)
Issue (Month): 1 (January)
Pages: 15-22

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Handle: RePEc:eee:ecolet:v:54:y:1997:i:1:p:15-22

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References

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  1. Busch, Lutz-Alexander & Wen, Quan, 1995. "Perfect Equilibria in Negotiation Model," Econometrica, Econometric Society, vol. 63(3), pages 545-65, May.
  2. Shaked, Avner & Sutton, John, 1984. "Involuntary Unemployment as a Perfect Equilibrium in a Bargaining Model," Econometrica, Econometric Society, vol. 52(6), pages 1351-64, November.
  3. Fernandez, Raquel & Glazer, Jacob, 1991. "Striking for a Bargain between Two Completely Informed Agents," American Economic Review, American Economic Association, vol. 81(1), pages 240-52, March.
  4. Ariel Rubinstein, 2010. "Perfect Equilibrium in a Bargaining Model," Levine's Working Paper Archive 252, David K. Levine.
  5. repec:fth:harver:1432 is not listed on IDEAS
  6. Haller, Hans & Holden, Steinar, 1990. "A letter to the editor on wage bargaining," Journal of Economic Theory, Elsevier, vol. 52(1), pages 232-236, October.
  7. Muthoo, Abhinay, 1992. "Revocable Commitment and Sequential Bargaining," Economic Journal, Royal Economic Society, vol. 102(411), pages 378-87, March.
  8. Holden Steinar, 1994. "Bargaining and Commitment in a Permanent Relationship," Games and Economic Behavior, Elsevier, vol. 7(2), pages 169-176, September.
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Cited by:
  1. Manzini, Paola, 1999. "Strategic bargaining with destructive power," Economics Letters, Elsevier, vol. 65(3), pages 315-322, December.

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