IDEAS home Printed from https://ideas.repec.org/a/prf/journl/v13y2019i1p79-93.html

Bargaining Power: Significance, Structure and Development

Author

Listed:
  • Jan Cervenka

    (University of Finance and Administration)

Abstract

In game theory, the bargaining problem is defined as an exchange of utilities between negotiators. Assumptions used in game theoretical solutions are often partially or fully not applicable in real situations. The outcome of the bargaining also depends on the parameter called bargaining power. This parameter, although usually neglected or perceived only as static, determines to a large extent on which negotiator will succeed with his idea of the distribution of utilities. Paper focuses on the identification of the elements of bargaining power, the possibilities of their exploration and development. Bargaining power is described as a combination of facts and abilities that can be variable during bargaining. The paper analyses these facts and abilities, divides them into individual parts and suggests, how to influence them both immediately and in the long run.

Suggested Citation

  • Jan Cervenka, 2019. "Bargaining Power: Significance, Structure and Development," ACTA VSFS, University of Finance and Administration, vol. 13(1), pages 79-93.
    • Handle: RePEc:prf:journl:v:13:y:2019:i:1:p:79-93
    as

    Download full text from publisher

    File URL: https://www.vsfs.cz/periodika/acta-2019-1-05.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Svejnar, Jan, 1986. "Bargaining Power, Fear of Disagreement, and Wage Settlements: Theory and Evidence from U.S. Industry," Econometrica, Econometric Society, vol. 54(5), pages 1055-1078, September.
    2. Carl M. Stevens, 1958. "On the Theory of Negotiation," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 72(1), pages 77-97.
    3. Roberto Roson & Franz Hubert, 2015. "Bargaining Power and Value Sharing in Distribution Networks: A Cooperative Game Theory Approach," Networks and Spatial Economics, Springer, vol. 15(1), pages 71-87, March.
    4. Nash, John, 1950. "The Bargaining Problem," Econometrica, Econometric Society, vol. 18(2), pages 155-162, April.
    5. John C. Harsanyi & Reinhard Selten, 1972. "A Generalized Nash Solution for Two-Person Bargaining Games with Incomplete Information," Management Science, INFORMS, vol. 18(5-Part-2), pages 80-106, January.
    6. Fabbri, Daniela & Klapper, Leora F., 2016. "Bargaining power and trade credit," Journal of Corporate Finance, Elsevier, vol. 41(C), pages 66-80.
    7. Manea, Mihai, 2017. "Bargaining in dynamic markets," Games and Economic Behavior, Elsevier, vol. 104(C), pages 59-77.
    8. Donald J Lecraw, 1984. "Bargaining Power, Ownership, and Profitability of Transnational Corporations in Developing Countries," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 15(1), pages 27-43, March.
    9. Sarkar, Sudipto, 2013. "Distressed exchange, bargaining power, and prior capital structure," Journal of Economic Dynamics and Control, Elsevier, vol. 37(12), pages 2695-2709.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Joan Esteban & József Sákovics, 2002. "Endogenous bargaining power," Economics Working Papers 644, Department of Economics and Business, Universitat Pompeu Fabra.
    2. Hom M Pant, 1996. "Endogenous Behaviour of the Tariff Rate in a Political Economy," International Trade 9609001, University Library of Munich, Germany, revised 01 Oct 1996.
    3. Joan Esteban & József Sákovics, 2008. "A Theory of Agreements in the Shadow of Conflict: The Genesis of Bargaining Power," Theory and Decision, Springer, vol. 65(3), pages 227-252, November.
    4. Joan Esteban & Jozsef Sakovics, 2006. "A theory of agreements in the shadow of conflict," Edinburgh School of Economics Discussion Paper Series 139, Edinburgh School of Economics, University of Edinburgh.
    5. José-Manuel Giménez-Gómez & António Osório & Josep E. Peris, 2015. "From Bargaining Solutions to Claims Rules: A Proportional Approach," Games, MDPI, vol. 6(1), pages 1-7, March.
    6. de Clippel, Geoffroy & Pérez-Castrillo, David & Wettstein, David, 2012. "Egalitarian equivalence under asymmetric information," Games and Economic Behavior, Elsevier, vol. 75(1), pages 413-423.
    7. van Damme, Eric & Lang, Xu, 2025. "Two-person bargaining when the disagreement point is private information," Games and Economic Behavior, Elsevier, vol. 150(C), pages 387-400.
    8. Kunter, Marcus, 2012. "Coordination via cost and revenue sharing in manufacturer–retailer channels," European Journal of Operational Research, Elsevier, vol. 216(2), pages 477-486.
    9. R. Harrison Wagner, 1979. "On The Unification of Two-Person Bargaining Theory," Journal of Conflict Resolution, Peace Science Society (International), vol. 23(1), pages 71-101, March.
    10. Laruelle, Annick & Valenciano, Federico, 2007. "Bargaining in committees as an extension of Nash's bargaining theory," Journal of Economic Theory, Elsevier, vol. 132(1), pages 291-305, January.
    11. van Velthoven, Ben & van Winden, Frans, 1985. "Towards a politico-economic theory of social security," European Economic Review, Elsevier, vol. 27(2), pages 263-289, March.
    12. Harbaugh, Rick, 2005. "The effect of employee stock ownership on wage and employment bargaining," Journal of Comparative Economics, Elsevier, vol. 33(3), pages 565-583, September.
    13. Lv, Wei & Li, Hongyi & Tang, Jiafu, 2017. "Bargaining model of labor disputes considering social mediation and bounded rationalityAuthor-Name: Liu, Dehai," European Journal of Operational Research, Elsevier, vol. 262(3), pages 1064-1071.
    14. Forgo, F. & Szidarovszky, F., 2003. "On the relation between the Nash bargaining solution and the weighting method," European Journal of Operational Research, Elsevier, vol. 147(1), pages 108-116, May.
    15. Lippman, Steven A. & McCardle, Kevin F. & Tang, Christopher S., 2013. "Using Nash bargaining to design project management contracts under cost uncertainty," International Journal of Production Economics, Elsevier, vol. 145(1), pages 199-207.
    16. Driesen, Bram & Perea, Andrés & Peters, Hans, 2012. "Alternating offers bargaining with loss aversion," Mathematical Social Sciences, Elsevier, vol. 64(2), pages 103-118.
    17. Zhu, Yongyi & Yu, Di, 2024. "Digital transformation and firms’ bargaining power: Evidence from China," Journal of Business Research, Elsevier, vol. 183(C).
    18. Ronghuo Zheng & Tinglong Dai & Katia Sycara & Nilanjan Chakraborty, 2016. "Automated Multilateral Negotiation on Multiple Issues with Private Information," INFORMS Journal on Computing, INFORMS, vol. 28(4), pages 612-628, November.
    19. Claus-Jochen Haake & Thorsten Upmann & Papatya Duman, 2019. "The Decomposability of the Nash Bargaining Solution in Labor Markets," Working Papers CIE 128, Paderborn University, CIE Center for International Economics.
    20. Youngsub Chun, 2001. "The Separability Principle in Bargaining," Working Paper Series no43, Institute of Economic Research, Seoul National University.

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    JEL classification:

    • C70 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - General
    • C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games
    • C79 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Other

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:prf:journl:v:13:y:2019:i:1:p:79-93. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Magdalena Šebková (email available below). General contact details of provider: https://edirc.repec.org/data/vsfspcz.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.