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Bargaining orders in a multi-person bargaining game

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  • Xiao, Jun

Abstract

This paper studies a complete-information bargaining game with one buyer and multiple sellers of different “sizes” or bargaining strengths. The bargaining order is determined endogenously. With a finite horizon, there is a unique subgame perfect equilibrium outcome, in which the buyer purchases in order of increasing size–from the smallest to the largest. With an infinite horizon, if the sellers have sufficiently different sizes, there is a unique equilibrium outcome, which has the same bargaining order. If the sellers have similar sizes with an infinite horizon, there may be multiple equilibrium outcomes with different bargaining orders.

Suggested Citation

  • Xiao, Jun, 2018. "Bargaining orders in a multi-person bargaining game," Games and Economic Behavior, Elsevier, vol. 107(C), pages 364-379.
  • Handle: RePEc:eee:gamebe:v:107:y:2018:i:c:p:364-379
    DOI: 10.1016/j.geb.2017.12.001
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    References listed on IDEAS

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    5. Ying Chen & Jan Zapal, 2021. "Sequential Vote Buying," CERGE-EI Working Papers wp692, The Center for Economic Research and Graduate Education - Economics Institute, Prague.

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    More about this item

    Keywords

    Multi-person bargaining; Bargaining order;

    JEL classification:

    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
    • L23 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Organization of Production

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