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Relative Concerns and Delays in Bargaining with Private Information

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  • Ana Mauleon

    (CORE, University of Louvain, 34 Voie du Roman Pays, 1348 Louvain-la-Neuve, Belgium
    CEREC, Saint-Louis University, 43 Boulevard du Jardin Botanique, 1000 Brussels, Belgium)

  • Vincent Vannetelbosch

    (CORE, University of Louvain, 34 Voie du Roman Pays, 1348 Louvain-la-Neuve, Belgium
    CEREC, Saint-Louis University, 43 Boulevard du Jardin Botanique, 1000 Brussels, Belgium)

Abstract

We consider Rubinstein’s two-person alternating-offer bargaining model with two-sided incomplete information. We investigate the effects of one party having relative concerns about the bargaining outcome and the delay in reaching an agreement. We find that facing an opponent with stronger relative concerns only hurts the bargainer when she is stronger than her opponent. In addition, we show that an increase of one party’s relative concerns will decrease the maximum delay in reaching an agreement.

Suggested Citation

  • Ana Mauleon & Vincent Vannetelbosch, 2013. "Relative Concerns and Delays in Bargaining with Private Information," Games, MDPI, vol. 4(3), pages 1-10, June.
    • Handle: RePEc:gam:jgames:v:4:y:2013:i:3:p:329-338:d:26739
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    References listed on IDEAS

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    1. Rubinstein, Ariel, 1982. "Perfect Equilibrium in a Bargaining Model," Econometrica, Econometric Society, vol. 50(1), pages 97-109, January.
    2. Ken Binmore & Ariel Rubinstein & Asher Wolinsky, 1986. "The Nash Bargaining Solution in Economic Modelling," RAND Journal of Economics, The RAND Corporation, vol. 17(2), pages 176-188, Summer.
    3. Ana Mauleon & Vincent Vannetelbosch, 2005. "Strategic union delegation and strike activity," Canadian Journal of Economics, Canadian Economics Association, vol. 38(1), pages 149-173, February.
    4. Ana Mauleon & Vincent Vannetelbosch, 2013. "Relative Concerns and Delays in Bargaining with Private Information," Games, MDPI, vol. 4(3), pages 1-10, June.
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    13. Caulier, Jean-François & Mauleon, Ana & Vannetelbosch, Vincent, 2015. "Allocation rules for coalitional network games," Mathematical Social Sciences, Elsevier, vol. 78(C), pages 80-88.
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    Cited by:

    1. Förster, Manuel & Mauleon, Ana & Vannetelbosch, Vincent J., 2016. "Trust and manipulation in social networks," Network Science, Cambridge University Press, vol. 4(2), pages 216-243, June.
    2. Stefan Kohler & Karl H. Schlag, 2019. "Inequality Aversion Causes Equal Or Unequal Division In Alternating‐Offer Bargaining," Bulletin of Economic Research, Wiley Blackwell, vol. 71(1), pages 47-57, January.
    3. Ana Mauleon & Vincent Vannetelbosch, 2013. "Relative Concerns and Delays in Bargaining with Private Information," Games, MDPI, vol. 4(3), pages 1-10, June.
    4. DUJARDIN, Claire & lorant, VINCENT & THOMAS, Isabelle, 2013. "Self-assessed health of elderly people in Brussels: does the built environment matter?," LIDAM Discussion Papers CORE 2013048, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    5. PAPAVASILIOU, Anthony & HE, Yi & SVOBODA, Alva, 2013. "Self-commitment of combined cycle units under electricity price uncertainty," LIDAM Discussion Papers CORE 2013051, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    6. Chevalier, Philippe & Lamas, Alejandro & Lu, Liang & Mlinar, Tanja, 2015. "Revenue management for operations with urgent orders," European Journal of Operational Research, Elsevier, vol. 240(2), pages 476-487.

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    More about this item

    Keywords

    relative concerns; alternating-offer bargaining; private information; maximal delays;
    All these keywords.

    JEL classification:

    • C70 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - General
    • D60 - Microeconomics - - Welfare Economics - - - General
    • J50 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - General

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