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Bargaining with endogenous deadlines

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  • Mauleon, Ana
  • Vannetelbosch, Vincent

Abstract

We develop a two-person negotiation model with complete information which makes endogenous both the deadline and the level of surplus destruction after the deadline. We show that the equilibrium outcome is always unique but might be inefficient. Moreover, as the bargaining period becomes short or as the players become very patient, the unique outcome is always inefficient

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Bibliographic Info

Article provided by Elsevier in its journal Journal of Economic Behavior & Organization.

Volume (Year): 54 (2004)
Issue (Month): 3 (July)
Pages: 321-335

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Handle: RePEc:eee:jeborg:v:54:y:2004:i:3:p:321-335

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  1. VANNETELBOSCH, Vincent J., . "Rationalizability and equilibrium in N-person sequential bargaining," CORE Discussion Papers RP -1421, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  2. Damme, E.E.C. van & Selten, R. & Winter, E., 1989. "Alternating bid bargaining with a smallest money unit," Discussion Paper 1989-32, Tilburg University, Center for Economic Research.
  3. Nelson, Morton & Amoako-Adu, Ben & Smith, Brian, 1994. "Impact of labor strikes on equity values: Canadian evidence," Journal of Economics and Business, Elsevier, vol. 46(3), pages 153-165, August.
  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. HERINGS, P. Jean-Jacques & ANNETELBOSCH, Vincent J., . "Refinements of rationalizability for normal-form games," CORE Discussion Papers RP -1378, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  6. Vincent Vannetelbosch, 1999. "Alternating-Offer Bargaining and Common Knowledge of Rationality," Theory and Decision, Springer, vol. 47(2), pages 111-138, October.
  7. Watson, Joel, 1998. "Alternating-Offer Bargaining with Two-Sided Incomplete Information," Review of Economic Studies, Wiley Blackwell, vol. 65(3), pages 573-94, July.
  8. Michelle R Garfinkel & Stergios Skaperdas, 2001. "Conflict Without Misperceptions or Incomplete Information: How the Future Matters," Levine's Working Paper Archive 563824000000000011, David K. Levine.
  9. 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.
  10. Fershtman Chaim & Seidmann Daniel J., 1993. "Deadline Effects and Inefficient Delay in Bargaining with Endogenous Commitment," Journal of Economic Theory, Elsevier, vol. 60(2), pages 306-321, August.
  11. Ching-to Albert Ma & Michael Manove, 1991. "Bargaining with Deadlines and Imperfect Player Control," Papers 0007, Boston University - Industry Studies Programme.
  12. HERINGS, P. J.-J. & VANNETELBOSCH, Vincent J., 1998. "The equivalence of the Dekel-Fudenberg iterative procedure and weakly perfect rationalizability," CORE Discussion Papers 1998029, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  13. Rubinstein, Ariel, 1982. "Perfect Equilibrium in a Bargaining Model," Econometrica, Econometric Society, vol. 50(1), pages 97-109, January.
  14. Kohlberg, Elon & Mertens, Jean-Francois, 1986. "On the Strategic Stability of Equilibria," Econometrica, Econometric Society, vol. 54(5), pages 1003-37, September.
  15. Laszlo Goerke & Manfred J. Holler, 1999. "Strike Ballots as a Commitment Device," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 155(3), pages 487-, September.
  16. Perry Motty & Reny Philip J., 1993. "A Non-cooperative Bargaining Model with Strategically Timed Offers," Journal of Economic Theory, Elsevier, vol. 59(1), pages 50-77, February.
  17. Brian E. Becker & Craig A. Olson, 1986. "The impact of strikes on shareholder equity," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 39(3), pages 425-438, April.
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Cited by:
  1. Juan J. Vidal Puga, 2006. "Reinterpreting The Meaning Of Breakdown," Working Papers. Serie AD 2006-22, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
  2. 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.

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