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Bargaining Order in a Multi-Person Bargaining Game

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  • Jun Xiao
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Abstract

This paper studies a complete-information bargaining game with one buyer and multiple sellers of di¤erent ?sizes? or bargaining strengths. The bargaining order is determined by the buyer. If the buyer can commit to a bargaining order, there is a unique subgame perfect equilibrium outcome where the buyer bargains in order of increasing size ? from the smallest to the largest. If the buyer cannot commit to a bargaining order and the sellers are su¢ ciently di¤erent, there is also a unique subgame perfect equilibrium outcome again with the order of increasing size.

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File URL: http://fbe.unimelb.edu.au/__data/assets/pdf_file/0005/784310/1150.pdf
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Bibliographic Info

Paper provided by The University of Melbourne in its series Department of Economics - Working Papers Series with number 1150.

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Length: 34 pages
Date of creation: 2012
Date of revision:
Handle: RePEc:mlb:wpaper:1150

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Keywords: multi-person bargaining; bargaining order;

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References

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  1. Prabal Roy Chowdhury & Kunal Sengupta, 2008. "Multi-person bargaining with complementarity: Is there holdout?," Indian Statistical Institute, Planning Unit, New Delhi Discussion Papers 08-10, Indian Statistical Institute, New Delhi, India.
  2. Muthoo,Abhinay, 1999. "Bargaining Theory with Applications," Cambridge Books, Cambridge University Press, number 9780521576475.
  3. Flamini, Francesca, 2007. "First things first? The agenda formation problem for multi-issue committees," Journal of Economic Behavior & Organization, Elsevier, vol. 63(1), pages 138-157, May.
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Cited by:
  1. Amit Kumar Maurya & Shubhro Sarkar, 2013. "Bargaining order and delays in multilateral bargaining with asymmetric sellers," Indira Gandhi Institute of Development Research, Mumbai Working Papers 2013-015, Indira Gandhi Institute of Development Research, Mumbai, India.

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