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Stakeholders in Bilateral Conflict

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Author Info
Paola Manzini (Queen Mary, University of London & IZA)
Clara Ponsati (Institut d'Analisi Economica - CSIC & CODE-Universitat Autonoma de Barcelona)

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Abstract

The resolution of a conflict often has an impact which extends beyond the remits of the parties directly involved in the confrontation (e.g. labour negotiations in sectors of public interest, where a strike would impact on the public at large). Once this is recognised, models addressing negotiations in such situations ought to account for the role and interests of the stakeholder - a third party whose stake is linked to the original negotiations. In this paper we address the strategic role of stakeholders in bilateral confrontations that take the form of a war of attrition; we assume that the bilateral confrontation runs concurrently with the parties interaction with the stakeholder, that chooses strategically her timing to intervene and take action to promote agreement. We show that under complete information the interplay of different interests in this tripartite timing game results in delayed outcomes. We also explore the role of incomplete information and show that asymmetries of information do not necessarily translate in increased inefficiency.

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Publisher Info
Paper provided by EconWPA in its series Game Theory and Information with number 0311008.

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Date of creation: 27 Nov 2003
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Handle: RePEc:wpa:wuwpga:0311008

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Related research
Keywords: stakeholders; bargaining; war of attrition;

Other versions of this item:

Find related papers by JEL classification:
C7 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory
D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances
J5 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Jehiel, Philippe & Moldovanu, Benny, 1995. "Cyclical Delay in Bargaining with Externalities," Review of Economic Studies, Blackwell Publishing, vol. 62(4), pages 619-37, October. [Downloadable!] (restricted)
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  2. Martin J. Osborne & Ariel Rubinstein, 1994. "A Course in Game Theory," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262650401.
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  3. Hendricks, Ken & Weiss, Andrew & Wilson, Charles A, 1988. "The War of Attrition in Continuous Time with Complete Information," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 29(4), pages 663-80, November. [Downloadable!] (restricted)
    Other versions:
  4. Paola Manzini & Clara Ponsati', 2001. "Stakeholders, Bargaining and Strikes," Game Theory and Information 0112001, EconWPA. [Downloadable!]
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  5. Jehiel, Philippe & Moldovanu, Benny, 1995. "Negative Externalities May Cause Delay in Negotiation," Econometrica, Econometric Society, vol. 63(6), pages 1321-35, November. [Downloadable!] (restricted)
  6. Bulow, Jeremy I & Klemperer, Paul, 1997. "The Generalized War of Attrition," CEPR Discussion Papers 1564, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  7. Dilip Abreu & Faruk Gul, 2000. "Bargaining and Reputation," Econometrica, Econometric Society, vol. 68(1), pages 85-118, January.
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  8. Martin J. Osborne & Ariel Rubinstein, 2005. "Bargaining and Markets," Levine's Bibliography 666156000000000515, UCLA Department of Economics. [Downloadable!]
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Mark Fey & Kristopher Ramsay, 2009. "Mechanism design goes to war: peaceful outcomes with interdependent and correlated types," Review of Economic Design, Springer, vol. 13(3), pages 233-250, September. [Downloadable!] (restricted)
  2. P. Manzini & C. Ponsati, 2006. "Stakeholder bargaining games," International Journal of Game Theory, Springer, vol. 34(1), pages 67-77, April. [Downloadable!] (restricted)
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