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Pareto efficiency in the dynamic one-dimensional bargaining model

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  • Tasos Kalandrakis

Abstract

Pareto-dominated agreements are shown to prevail with positive probability in an open set of status quo in a Markov perfect equilibrium of a one-dimensional dynamic bargaining game. This equilibrium is continuous, symmetric, with dynamic preferences that satisfy the single-plateau property. It is also shown that there does not exist a symmetric equilibrium with single-peaked preferences.

Suggested Citation

  • Tasos Kalandrakis, 2016. "Pareto efficiency in the dynamic one-dimensional bargaining model," Journal of Theoretical Politics, , vol. 28(4), pages 525-536, October.
  • Handle: RePEc:sae:jothpo:v:28:y:2016:i:4:p:525-536
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    References listed on IDEAS

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    1. Bowen, T. Renee & Zahran, Zaki, 2012. "On dynamic compromise," Games and Economic Behavior, Elsevier, vol. 76(2), pages 391-419.
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    8. John Duggan & Tasos Kalandrakis, 2011. "A Newton collocation method for solving dynamic bargaining games," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 36(3), pages 611-650, April.
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    1. repec:the:publsh:2215 is not listed on IDEAS
    2. Anesi, Vincent & Duggan, John, 2018. "Existence and indeterminacy of markovian equilibria in dynamic bargaining games," Theoretical Economics, Econometric Society, vol. 13(2), May.
    3. Bowen, T. Renee & Chen, Ying & Eraslan, Hülya & Zápal, Jan, 2017. "Efficiency of flexible budgetary institutions," Journal of Economic Theory, Elsevier, vol. 167(C), pages 148-176.

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