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Bargaining unexplained

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  • Dan Usher

Abstract

We know that people strike bargains and that civilized life could not proceed otherwise. We do not know how bargains are struck. We have no explanation of bargaining, comparable to the general equilibrium in the economy, accounting for essential features of bargaining as we know it with reference to universal self-interested behaviour subject only to economy-wide rules. This claim is supported here in a survey of the principal models of bargaining: as a reflection of a shared sense of fairness, as an imposed sequence of offers, as a source of transaction cost and as a species of conflict. Also discussed is the dual role of bargaining in politics as a necessary complement to voting and as an impediment to the exploitation of minority groups.
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Suggested Citation

  • Dan Usher, 2012. "Bargaining unexplained," Public Choice, Springer, vol. 151(1), pages 23-41, April.
    • Handle: RePEc:kap:pubcho:v:151:y:2012:i:1:p:23-41
    DOI: 10.1007/s11127-010-9732-4
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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. Muthoo,Abhinay, 1999. "Bargaining Theory with Applications," Cambridge Books, Cambridge University Press, number 9780521576475, November.
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    13. Dan Usher, 2012. "Bargaining and voting," Public Choice, Springer, vol. 151(3), pages 739-755, June.
    14. Brams,Steven J. & Taylor,Alan D., 1996. "Fair Division," Cambridge Books, Cambridge University Press, number 9780521556446, November.
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    Cited by:

    1. Marit Linnea Gjelsvik & Victoria Sparrman & Ragnar Nymoen, 2015. "Have inflation targeting and EU labour immigration changed the system of wage formation in Norway?," Discussion Papers 824, Statistics Norway, Research Department.
    2. Dan Usher, 2012. "Bargaining and voting," Public Choice, Springer, vol. 151(3), pages 739-755, June.
    3. Richard Wagner & Deema Yazigi, 2014. "Form vs. substance in selection through competition: elections, markets, and political economy," Public Choice, Springer, vol. 159(3), pages 503-514, June.
    4. Dan Usher, 2010. "Three Papers On Bargaining," Working Paper 1239, Economics Department, Queen's University.

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    JEL classification:

    • C7 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory

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