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Sequential bargaining with common values

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  • Schweinzer, Paul

Abstract

We study the alternating-offers bargaining problem of assigning an indivisible and commonly valued object to one of two players who jointly own this object. The players are asymmetrically informed about the object's value and have veto power over any settlement. There is no depreciation during the bargaining process which involves signalling of private information. We characterise the perfect Bayesian equilibrium outcome of this game which is unique if offers are required to be strictly increasing. Equilibrium agreement is reached gradually and non-deterministically. The better informed player obtains a rent.

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Bibliographic Info

Article provided by Elsevier in its journal Journal of Mathematical Economics.

Volume (Year): 46 (2010)
Issue (Month): 1 (January)
Pages: 109-121

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Handle: RePEc:eee:mateco:v:46:y:2010:i:1:p:109-121

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Web page: http://www.elsevier.com/locate/jmateco

Related research

Keywords: Sequential bargaining Common values Incomplete information Repeated games Cake cutting;

References

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Cited by:
  1. Jianpei Li & Yi Xue & Weixing Wu, 2013. "Partnership dissolution and proprietary information," Social Choice and Welfare, Springer, vol. 40(2), pages 495-527, February.

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