Sequential bargaining in a market with one seller and two different buyers
AbstractA matching and bargaining model in a market with one seller and two buyers, differing only in their reservation price, is analyzed. No subgame perfect equilibrium exists for stationary strategies. The authors demonstrate the existence of inefficient equilibria in which the low buyer receives the good with large probability, even as friction becomes negligible. They investigate the relationship between the use of Nash and sequential bargaining. Nash bargaining seems applicable only when the sequential approach yields a unique stationary strategy subgame perfect equilibrium.
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.
Bibliographic InfoArticle provided by Elsevier in its journal Games and Economic Behavior.
Volume (Year): 3 (1991)
Issue (Month): 4 (November)
Contact details of provider:
Web page: http://www.elsevier.com/locate/inca/622836
Other versions of this item:
- Ebbe Groes & Torben Tranæs, 1989. "Sequential Bargaining in a Market with One Seller and Two Different Buyers," Discussion Papers 89-22, University of Copenhagen. Department of Economics.
- C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Matteo Maria GALIZZI, 2006. "Gas thin markets:insights from bargaining and networks models," Departmental Working Papers 2006-12, Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano.
- Bård Harstad, 2011.
"The Market for Conservation and Other Hostages,"
NBER Working Papers
17409, National Bureau of Economic Research, Inc.
- Ebbe Hendon & Birgitte Sloth & Torben Tranæs, 1994.
"Decentralized trade with bargaining and voluntary matching,"
Review of Economic Design,
Springer, vol. 1(1), pages 55-77, December.
- : Ebbe Hendon & Birgitte Sloth & Torben Tranæs, 1993. "Decentralized Trade with Bargaining and Voluntary Matching," Discussion Papers 93-08, University of Copenhagen. Department of Economics.
- Sempere-Monerris, José J. & Vannetelbosch, Vincent J., 1997. "Bargaining with Externalities: Licensing of an Innovation," Discussion Papers (IRES - Institut de Recherches Economiques et Sociales) 1997007, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
- Chatterjee, Kalyan & Dutta, Bhaskar, 1998.
"Rubinstein Auctions: On Competition for Bargaining Partners,"
Games and Economic Behavior,
Elsevier, vol. 23(2), pages 119-145, May.
- Chatterjee, K. & Dutta, B., 1994. "Rubinstein auctions: On competition for bargaining partners," Discussion Paper 1994-57, Tilburg University, Center for Economic Research.
- Calvo-Armengol, Antoni, 1999. "A note on three-player noncooperative bargaining with restricted pairwise meetings," Economics Letters, Elsevier, vol. 65(1), pages 47-54, October.
- Mitsutoshi M. Adachi, 1998. "A note on frictions in the Bazaar type bargaining game," Investigaciones Economicas, Fundación SEPI, vol. 22(2), pages 293-304, May.
- Chatterjee, Kalyan & Dutta, Bhaskar, 2006. "Markets with Bilateral Bargaining and Incomplete Information," The Warwick Economics Research Paper Series (TWERPS) 762, University of Warwick, Department of Economics.
- Björnerstedt, Jonas & Westermark, Andreas, 2009. "Stationary equilibria in bargaining with externalities," Games and Economic Behavior, Elsevier, vol. 65(2), pages 318-338, March.
- Charles J. Thomas, 2012. "An Alternating-Offers Model of Multilateral Negotiations," Working Papers 12-31, Chapman University, Economic Science Institute.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wendy Shamier).
If references are entirely missing, you can add them using this form.