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Signaling via an agenda in multi-issue bargaining with incomplete information

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  • Lutz-Alexander Busch

    (Department of Economics, University of Waterloo, Waterloo, Ontario N2L 3G1, CANADA)

  • Ignatius J. Horstmann

    (Department of Economics, University of Western Ontario, London, Ontario N6A 5C2, CANADA)

Abstract

While actual bargaining features many issues and decision making on the order in which issues are negotiated and resolved, the typical models of bargaining do not. Instead, they have either a single issue or many issues resolved in some fixed order, typically simultaneously. This paper shows that, when there is incomplete information, such an approach removes an important avenue for information transmission: the bargaining agenda itself. Compared to the standard model, pooling on offers by the informed is reduced and a signaling equilibrium arises when the agenda is determined endogenously. Signaling is carried out by use of an issue-by-issue bargaining agenda.

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Bibliographic Info

Article provided by Springer in its journal Economic Theory.

Volume (Year): 13 (1999)
Issue (Month): 3 ()
Pages: 561-575

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Handle: RePEc:spr:joecth:v:13:y:1999:i:3:p:561-575

Note: Received: September 3, 1997; revised version: May 11, 1998
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Related research

Keywords: Multi-issue bargaining · Agenda bargaining · Incomplete information · Signaling.;

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Cited by:
  1. Busch, Lutz-Alexander & Horstmann, Ignatius J., 2002. "The game of negotiations: ordering issues and implementing agreements," Games and Economic Behavior, Elsevier, vol. 41(2), pages 169-191, November.
  2. Snyder, Christopher M. & Vonortas, Nicholas S., 2005. "Multiproject contact in research joint ventures: evidence and theory," Journal of Economic Behavior & Organization, Elsevier, vol. 58(4), pages 459-486, December.
  3. In, Younghwan & Serrano, Roberto, 2004. "Agenda restrictions in multi-issue bargaining," Journal of Economic Behavior & Organization, Elsevier, vol. 53(3), pages 385-399, March.
  4. Carlo Carraro & Alessandra Sgobbi, 2007. "Modelling Negotiated Decision Making: a Multilateral, Multiple Issues, Non-Cooperative Bargaining Model with Uncertainty," Working Papers 2007_12, Department of Economics, University of Venice "Ca' Foscari".
  5. Aviad Heifetz & Clara Ponsati, 2007. "All in good time," International Journal of Game Theory, Springer, vol. 35(4), pages 521-538, April.

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