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A Bargaining Game with Proposers in the Hot Seat

Author

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  • Bram Driesen

    (Department Academic Affairs, Open University, Valkenburgerweg 177, 6419 AT Heerlen, The Netherlands)

Abstract

This note reconsiders the Rubinstein bargaining game under the assumption that a rejected offer is only costly to the proposer who made the rejected offer. It is shown that then, the classic result of Shaked that, in the multilateral version of this game, every division of the good can be sustained in SPE no longer holds. Specifically, there are many SPE, but players’ (expected) payoffs in SPE are unique. The assumption further leads to a responder advantage.

Suggested Citation

  • Bram Driesen, 2021. "A Bargaining Game with Proposers in the Hot Seat," Games, MDPI, vol. 12(4), pages 1-8, November.
    • Handle: RePEc:gam:jgames:v:12:y:2021:i:4:p:87-:d:682250
    as

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    References listed on IDEAS

    as
    1. Rubinstein, Ariel, 1982. "Perfect Equilibrium in a Bargaining Model," Econometrica, Econometric Society, vol. 50(1), pages 97-109, January.
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