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Bargaining order in multilateral bargaining with imperfect compliments

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  • Maurya, Amit Kumar

Abstract

Using a sequential model of multilateral bargaining involving one buyer and two sellers, who are selling objects which are imperfect compliments for the buyer, we analyse buyer’s preferred bargaining order i.e. whether the buyer prefers to buy higher valuation object first or second. For a narrow range of parameters, where players are patient enough and objects exhibit high degree of complimentarity, multiple equilibria exist such that both the bargaining orders are preferred. For rest of the range, which is relatively much larger, buyer prefers to buy higher valuation object first.

Suggested Citation

  • Maurya, Amit Kumar, 2018. "Bargaining order in multilateral bargaining with imperfect compliments," MPRA Paper 89583, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:89583
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    File URL: https://mpra.ub.uni-muenchen.de/89583/1/MPRA_paper_89583.pdf
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    References listed on IDEAS

    as
    1. Rubinstein, Ariel, 1982. "Perfect Equilibrium in a Bargaining Model," Econometrica, Econometric Society, vol. 50(1), pages 97-109, January.
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    3. Van Damme, Eric & Selten, Reinhard & Winter, Eyal, 1990. "Alternating bid bargaining with a smallest money unit," Games and Economic Behavior, Elsevier, vol. 2(2), pages 188-201, June.
    4. John Sutton, 1986. "Non-Cooperative Bargaining Theory: An Introduction," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 53(5), pages 709-724.
    5. Cai, Hongbin, 2000. "Delay in Multilateral Bargaining under Complete Information," Journal of Economic Theory, Elsevier, vol. 93(2), pages 260-276, August.
    6. Xiao, Jun, 2018. "Bargaining orders in a multi-person bargaining game," Games and Economic Behavior, Elsevier, vol. 107(C), pages 364-379.
    7. Jun Xiao, 2012. "Bargaining Order in a Multi-Person Bargaining Game," Department of Economics - Working Papers Series 1150, The University of Melbourne.
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    More about this item

    Keywords

    Key words: Multilateral bargaining; Bargaining order; Imperfect compliments;
    All these keywords.

    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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