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Bargaining Over an Uncertain Outcome: The Role of Beliefs

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Author Info
Billot, A.
Chateauneuf, A.
Gilboa, I.
Tallon, J.-M.

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Abstract

We study the Nash bargaining solution of a problem in which two agents bargain over an uncertain outcome. Under the assumptions of risk neutrality and of constant absolute risk aversion, we study the way that solution varies, ex ante, when we vary the beliefs of one agent. Changing an agent`s beliefs in a way that makes them ``more distant`` from the other agent`s beliefs makes the second agent better off.

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Publisher Info
Paper provided by Tel Aviv in its series Papers with number 2001-21.

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Length: 12 pages
Date of creation: 2001
Date of revision:
Handle: RePEc:fth:teavfo:2001-21

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Postal: Israel TEL-AVIV UNIVERSITY, THE FOERDER INSTITUTE FOR ECONOMIC RESEARCH, RAMAT AVIV 69 978 TEL AVIV ISRAEL.
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Related research
Keywords: RISK ; GAMES ; OUTCOME;

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Find related papers by JEL classification:
C7 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory
D8 - Microeconomics - - Information, Knowledge, and Uncertainty

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