Ester Camiña () (Departamento de Fundamentos del Análisis Económico II (Economía Cuantitativa). Universidad Complutense de Madrid.) Nicolás Porteiro () (Department of Economics, Universidad Pablo de Olavide)
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We develop a model of bargaining that provides a rationale for the difference in the method of negotiation, depending on the nature of the conflict. We distinguish those negotiations that take place previous to a potential conflict (peacekeeping), and negotiations inside the conflict (peacemaking). In these contexts, we study the role of a mediator that tries to achieve a certain balance between the efficiency of the agreement and the equality of the sharing. We show that the credibility of the mediator comes from her willingness to impose delays in the negotiation, even if that implies costs. We also find how the “weak” player in the conflict can strategically profit from the mediator’s quest for equality. Finally, we show how the capacity of the mediator to induce a higher equality in the sharing is always higher in a peacemaking situation than in a peacekeeping one..
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Paper provided by Universidad Pablo de Olavide, Departamento de Economía in its series Working Papers with number
07.05.
Find related papers by JEL classification: C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
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