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Strategic wage bargaining with destructive power: the role of commitment

  • Manzini, Paola

We built a simple alternating offers bargaining model in which one of the players can commit to damage the "pie" they are bargaining over. The unique equilibrium partition his share does not vary monotonically with the discount factor.

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File URL: http://www.sciencedirect.com/science/article/B6V84-3SWY199-3/2/2a1389429f62fe85787bbf27dc82a951
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Article provided by Elsevier in its journal Economics Letters.

Volume (Year): 54 (1997)
Issue (Month): 1 (January)
Pages: 15-22

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Handle: RePEc:eee:ecolet:v:54:y:1997:i:1:p:15-22
Contact details of provider: Web page: http://www.elsevier.com/locate/ecolet

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  1. Shaked, Avner & Sutton, John, 1984. "Involuntary Unemployment as a Perfect Equilibrium in a Bargaining Model," Econometrica, Econometric Society, vol. 52(6), pages 1351-64, November.
  2. 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.
  3. Busch, Lutz-Alexander & Wen, Quan, 1995. "Perfect Equilibria in Negotiation Model," Econometrica, Econometric Society, vol. 63(3), pages 545-65, May.
  4. Raquel Fernandez & Jacob Glazer, 1989. "Striking for a Bargain Between Two Completely Informed Agents," NBER Working Papers 3108, National Bureau of Economic Research, Inc.
  5. repec:fth:harver:1432 is not listed on IDEAS
  6. Holden Steinar, 1994. "Bargaining and Commitment in a Permanent Relationship," Games and Economic Behavior, Elsevier, vol. 7(2), pages 169-176, September.
  7. Muthoo, Abhinay, 1992. "Revocable Commitment and Sequential Bargaining," Economic Journal, Royal Economic Society, vol. 102(411), pages 378-87, March.
  8. 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.
  9. Rubinstein, Ariel, 1982. "Perfect Equilibrium in a Bargaining Model," Econometrica, Econometric Society, vol. 50(1), pages 97-109, January.
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