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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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File URL: http://www.sciencedirect.com/science/article/B6V84-3SWY199-3/2/2a1389429f62fe85787bbf27dc82a951
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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. 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.
  2. Holden Steinar, 1994. "Bargaining and Commitment in a Permanent Relationship," Games and Economic Behavior, Elsevier, vol. 7(2), pages 169-176, September.
  3. Rubinstein, Ariel, 1982. "Perfect Equilibrium in a Bargaining Model," Econometrica, Econometric Society, vol. 50(1), pages 97-109, January.
  4. Raquel Fernandez & Jacob Glazer, 1989. "Striking for a Bargain Between Two Completely Informed Agents," NBER Working Papers 3108, National Bureau of Economic Research, Inc.
  5. repec:fth:harver:1432 is not listed on IDEAS
  6. Busch, L-A. & Wen, Q., 1991. "Perfect Equilibria in a Negotiation Model," University of Western Ontario, The Centre for the Study of International Economic Relations Working Papers 9108, University of Western Ontario, The Centre for the Study of International Economic Relations.
  7. 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.
  8. Avery Christopher & Zemsky Peter B., 1994. "Money Burning and Multiple Equilibria in Bargaining," Games and Economic Behavior, Elsevier, vol. 7(2), pages 154-168, September.
  9. Muthoo, Abhinay, 1992. "Revocable Commitment and Sequential Bargaining," Economic Journal, Royal Economic Society, vol. 102(411), pages 378-87, March.
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Cited by:
  1. Paola Manzini, 1996. "Strategic bargaining with destructive power," Game Theory and Information 9612002, EconWPA.

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