Time Inconsistency And Learning In Bargaining Games
AbstractThe literature on time-inconsistent preferences introduced naive, partially naive and sophisticated as types of agents that represent different levels of unawareness of agents' self-control problems. This paper incorporates time-inconsistent players in a sequential bargaining model. We first consider 'naive' agents who never learn about their types and show that bargaining between such a player and a standard exponential agent ends in immediate agreement. The more naive a player, the higher his share. If naive agents can learn their type over time, we show that there is a critical date such that there is no agreement before that date. Hence, existence of time-inconsistent players who can learn as they play the game can be another explanation for delays in bargaining.
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Bibliographic InfoPaper provided by EconWPA in its series Game Theory and Information with number 0507003.
Length: 40 pages
Date of creation: 06 Jul 2005
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Note: Type of Document - pdf; pages: 40
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Hyperbolic discounting; learning; bargaining; delay;
Other versions of this item:
- Zafer Akin, 2007. "Time inconsistency and learning in bargaining games," International Journal of Game Theory, Springer, vol. 36(2), pages 275-299, October.
- C7 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory
- D8 - Microeconomics - - Information, Knowledge, and Uncertainty
This paper has been announced in the following NEP Reports:
- NEP-ALL-2005-07-11 (All new papers)
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