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Immediate Agreement in Interdependent Bilateral Bargaining

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Author Info
Björnerstedt, Jonas () (Swedish Competition Authority)
Stennek, Johan () (Research Institute of Industrial Economics)
Abstract

This note provides sufficient conditions for immediate agreement in an extensive form model of interdependent bilateral bargaining. The model is suggested by Björnerstedt and Stennek (2006) as a work horse for studying bilateral oligopoly. The key feature of this model is that the firms are represented by separate agents in all negotiations in which they are involved. There is immediate agreement in equilibrium, essentially if production is strictly convex or if the agents use Markov strategies.

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Publisher Info
Paper provided by Research Institute of Industrial Economics in its series Working Paper Series with number 692.

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Length: 27 pages
Date of creation: 25 Jan 2007
Date of revision:
Handle: RePEc:hhs:iuiwop:0692

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Postal: Research Institute of Industrial Economics, Box 55665, SE-102 15 Stockholm, Sweden
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Related research
Keywords: Bilateral Oligopoly Intermediate Goods Bargaining Market Network Trade Link

Find related papers by JEL classification:
C70 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - General
D20 - Microeconomics - - Production and Organizations - - - General
D40 - Microeconomics - - Market Structure and Pricing - - - General
L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General
L40 - Industrial Organization - - Antitrust Issues and Policies - - - General

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