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A Note on Bargaining over a Finite Number of Feasible Agreements

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  • Muthoo, Abhinay

Abstract

In this note we show that the uniqueness of the subgame perfect equilibrium of Rubinstein's (1982) bargaining theory does not hold if the number of feasible agreements is finite. It will be shown that any Pareto-efficient agreement (belonging to the finite set of feasible agreements) can be supported as a subgame perfect equilibrium of the Rubinstein alternating-offers bargaining game, provided the length of a single bargaining period is sufficiently small.

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Bibliographic Info

Article provided by Springer in its journal Economic Theory.

Volume (Year): 1 (1991)
Issue (Month): 3 (July)
Pages: 290-92

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Handle: RePEc:spr:joecth:v:1:y:1991:i:3:p:290-92

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Cited by:
  1. Weinberger, Catherine J., 2000. "Selective Acceptance and Inefficiency in a Two-Issue Complete Information Bargaining Game," Games and Economic Behavior, Elsevier, vol. 31(2), pages 262-293, May.
  2. Attanasi, Giuseppe & Garcia-Gallego, Aurora & Georgantzis, Nikolaos & Montesano, Aldo, 2011. "An Experiment on Prisoner’s Dilemma with Confirmed Proposals," LERNA Working Papers 11.23.357, LERNA, University of Toulouse.
  3. Younghwan In, 2003. "A Note on Multi-Issue Bargaining with a Finite Set of Alternatives," Departmental Working Papers wp0304, National University of Singapore, Department of Economics.
  4. Vannetelbosch, Vincent J., 1996. "On Rationalizability in Two-Person Alternating-Offer Bargaining," Discussion Papers (IRES - Institut de Recherches Economiques et Sociales) 1996023, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
  5. Vincent Vannetelbosch, 1999. "Alternating-Offer Bargaining and Common Knowledge of Rationality," Theory and Decision, Springer, vol. 47(2), pages 111-138, October.
  6. Attanasi, Giuseppe & Garcia-Gallego, Aurora & Georgantzis, Nikolaos & Montesano, Aldo, 2010. "Non-cooperative games with chained confirmed proposals," TSE Working Papers 10-192, Toulouse School of Economics (TSE).
  7. Attanasi, Giuseppe & Garcia-Gallego, Aurora & Georgantzis, Nikolaos & Montesano, Aldo, 2011. "An Experiment on Prisoner’s Dilemma with Confirmed Proposals," TSE Working Papers 11-274, Toulouse School of Economics (TSE).
  8. Roberto Serrano, 2007. "Bargaining," Working Papers 2007-06, Instituto Madrileño de Estudios Avanzados (IMDEA) Ciencias Sociales.

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