Negative Externalities May Cause Delay in Negotiation
The authors study the strategic equilibria of a negotiation game where potential buyers are affected by identity-dependent, negative externalities. The unique equilibrium of long, finitely repeated generic games can either display delay--where a transaction can take place only in several stages before the deadline--or, in spite of the random element in the game, a well-defined buyer exists that obtains the object with probability close to one. Copyright 1995 by The Econometric Society.
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Volume (Year): 63 (1995)
Issue (Month): 6 (November)
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