Strategic bargaining with destructive power
AbstractThis paper studies a two-player alternating offers bargaining model in which one of the agents has the ability to damage permanently the ``pie'' bargained over. I show how this feature can result in an increase of the cost of rejecting an offer for the ``non-harming player''. Beside the ``Rubinstenian'' bilateral monopoly outcome, I show that it is possible to select a ``harming'' equilibrium in which the sequence of damages to the pie is endogenously determined and payoffs do not vary monotonically with the discount factor.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by EconWPA in its series Game Theory and Information with number 9612002.
Length: 21 pages
Date of creation: 05 Dec 1996
Date of revision:
Note: Type of Document - postscript; prepared on IBM PC ; to print on PostScript; pages: 21 ; figures: included. postcript via TrueTex Previewer
Contact details of provider:
Web page: http://188.8.131.52
bargaining; commitment; destructive power;
Other versions of this item:
- C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
This paper has been announced in the following NEP Reports:
- NEP-ALL-1998-10-02 (All new papers)
- NEP-GTH-1998-10-02 (Game Theory)
- NEP-MIC-1998-10-02 (Microeconomics)
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.:
- Manzini, Paola, 1997.
"Strategic wage bargaining with destructive power: the role of commitment,"
Elsevier, vol. 54(1), pages 15-22, January.
- Manzini, P., 1996. "Strategic Wage Bargaining with Destructive Power : The Role of Commitment," Discussion Papers 9617, Exeter University, Department of Economics.
- Lutz-Alexander Bush & Shouyong Shi & Quan Wen, 1998. "Bargaining with Surplus Destruction," Canadian Journal of Economics, Canadian Economics Association, vol. 31(4), pages 915-932, November.
- Busch, Lutz-Alexander & Wen, Quan, 1995.
"Perfect Equilibria in Negotiation Model,"
Econometric Society, vol. 63(3), pages 545-65, May.
- Busch, L-A. & Wen, Q., 1991. "Perfect Equilibria in a Negotiation Model," University of Western Ontario, The Centre for the Study of International Economic Relations Working Papers 9108, University of Western Ontario, The Centre for the Study of International Economic Relations.
- repec:fth:exetec:96/17 is not listed on IDEAS
- Rubinstein, Ariel, 1982.
"Perfect Equilibrium in a Bargaining Model,"
Econometric Society, vol. 50(1), pages 97-109, January.
- Maskin, Eric & Tirole, Jean, 1988.
"A Theory of Dynamic Oligopoly, I: Overview and Quantity Competition with Large Fixed Costs,"
Econometric Society, vol. 56(3), pages 549-69, May.
- J. Tirole & E. Maskin, 1982. "A Theory of Dynamic Oligopoly, I: Overview and Quantity Competition with Large-Fixed Costs," Working papers 320, Massachusetts Institute of Technology (MIT), Department of Economics.
- Eric Maskin & Jean Tirole, 2010. "A Theory of Dynamic Oligopoly, 1: Overview and Quantity Competition with Large Fixed Costs," Levine's Working Paper Archive 397, David K. Levine.
- Perry Motty & Reny Philip J., 1993. "A Non-cooperative Bargaining Model with Strategically Timed Offers," Journal of Economic Theory, Elsevier, vol. 59(1), pages 50-77, February.
- Fernandez, Raquel & Glazer, Jacob, 1991.
"Striking for a Bargain between Two Completely Informed Agents,"
American Economic Review,
American Economic Association, vol. 81(1), pages 240-52, March.
- Raquel Fernandez & Jacob Glazer, 1989. "Striking for a Bargain Between Two Completely Informed Agents," NBER Working Papers 3108, National Bureau of Economic Research, Inc.
- Muthoo Abhinay, 1995.
"Bargaining in a Long-Term Relationship with Endogenous Termination,"
Journal of Economic Theory,
Elsevier, vol. 66(2), pages 590-598, August.
- Abhinay Muthoo, . "Bargaining in a Long-Term Relationbship with Endogenous Termination," Economics Discussion Papers 422, University of Essex, Department of Economics.
- Holden, S., 1989.
"Non-Cooperative Wage Bargaining,"
12/1989, Oslo University, Department of Economics.
- Haller, Hans & Holden, Steinar, 1990. "A letter to the editor on wage bargaining," Journal of Economic Theory, Elsevier, vol. 52(1), pages 232-236, October.
- Sakovics Jozsef, 1993. "Delay in Bargaining Games with Complete Information," Journal of Economic Theory, Elsevier, vol. 59(1), pages 78-95, February.
- repec:fth:harver:1432 is not listed on IDEAS
- Avery Christopher & Zemsky Peter B., 1994. "Money Burning and Multiple Equilibria in Bargaining," Games and Economic Behavior, Elsevier, vol. 7(2), pages 154-168, September.
- Juan Vidal-Puga, 2008. "Delay in the alternating-offers model of bargaining," International Journal of Game Theory, Springer, vol. 37(4), pages 457-474, December.
- Juan J. Vidal Puga, 2006.
"Reinterpreting The Meaning Of Breakdown,"
Working Papers. Serie AD
2006-22, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
- Paola Manzini & Marco Mariotti, 1997. "A Model of Bargaining with the Possibility of Arbitration," Game Theory and Information 9710001, EconWPA.
- Mehrdad Vahabi, 2009.
"A Critical Review of Strategic Conflict Theory and Socio-political Instability Models,"
Revue d'économie politique,
Dalloz, vol. 0(6), pages 817-858.
- Mehrdad Vahabi, 2009. "A Critical Review of Strategic Conflict Theory and Socio-political Instability Models," Post-Print hal-00629129, HAL.
- Manzini, Paola & Mariotti, Marco, 2001. "Perfect Equilibria in a Model of Bargaining with Arbitration," Games and Economic Behavior, Elsevier, vol. 37(1), pages 170-195, October.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (EconWPA).
If references are entirely missing, you can add them using this form.