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Signaling via an agenda in multi-issue bargaining with incomplete information

Author

Listed:
  • Lutz-Alexander Busch

    (Department of Economics, University of Waterloo, Waterloo, Ontario N2L 3G1, CANADA)

  • Ignatius J. Horstmann

    (Department of Economics, University of Western Ontario, London, Ontario N6A 5C2, CANADA)

Abstract

While actual bargaining features many issues and decision making on the order in which issues are negotiated and resolved, the typical models of bargaining do not. Instead, they have either a single issue or many issues resolved in some fixed order, typically simultaneously. This paper shows that, when there is incomplete information, such an approach removes an important avenue for information transmission: the bargaining agenda itself. Compared to the standard model, pooling on offers by the informed is reduced and a signaling equilibrium arises when the agenda is determined endogenously. Signaling is carried out by use of an issue-by-issue bargaining agenda.

Suggested Citation

  • Lutz-Alexander Busch & Ignatius J. Horstmann, 1999. "Signaling via an agenda in multi-issue bargaining with incomplete information," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 13(3), pages 561-575.
    • Handle: RePEc:spr:joecth:v:13:y:1999:i:3:p:561-575
    Note: Received: September 3, 1997; revised version: May 11, 1998
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    Citations

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    Cited by:

    1. Rudolf Vetschera & Michael Filzmoser & Ronald Mitterhofer, 2014. "An Analytical Approach to Offer Generation in Concession-Based Negotiation Processes," Group Decision and Negotiation, Springer, vol. 23(1), pages 71-99, January.
    2. Busch, Lutz-Alexander & Horstmann, Ignatius J., 2002. "The game of negotiations: ordering issues and implementing agreements," Games and Economic Behavior, Elsevier, vol. 41(2), pages 169-191, November.
    3. Guoming Lai & Katia Sycara, 2009. "A Generic Framework for Automated Multi-attribute Negotiation," Group Decision and Negotiation, Springer, vol. 18(2), pages 169-187, March.
    4. In, Younghwan & Serrano, Roberto, 2004. "Agenda restrictions in multi-issue bargaining," Journal of Economic Behavior & Organization, Elsevier, vol. 53(3), pages 385-399, March.
    5. Aviad Heifetz & Clara Ponsati, 2007. "All in good time," International Journal of Game Theory, Springer;Game Theory Society, vol. 35(4), pages 521-538, April.
    6. Canidio, Andrea & Karle, Heiko, 2022. "The focusing effect in negotiations," Journal of Economic Behavior & Organization, Elsevier, vol. 197(C), pages 1-20.
    7. Guoming Lai & Cuihong Li & Katia Sycara, 2006. "Efficient Multi-Attribute Negotiation with Incomplete Information," Group Decision and Negotiation, Springer, vol. 15(5), pages 511-528, September.
    8. SangMok Lee, 2014. "Plea bargaining: on the selection of jury trials," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 57(1), pages 59-88, September.
    9. Snyder, Christopher M. & Vonortas, Nicholas S., 2005. "Multiproject contact in research joint ventures: evidence and theory," Journal of Economic Behavior & Organization, Elsevier, vol. 58(4), pages 459-486, December.
    10. Mehmet Bac, 2001. "On Creating and Claiming Value in Negotiations," Group Decision and Negotiation, Springer, vol. 10(3), pages 237-251, May.
    11. Carraro, Carlo & Sgobbi, Alessandra, 2007. "Modelling Negotiated Decision Making: A Multilateral, Multiple Issues, Non-Cooperative Bargaining Model with Uncertainty," CEPR Discussion Papers 6424, C.E.P.R. Discussion Papers.

    More about this item

    Keywords

    Multi-issue bargaining · Agenda bargaining · Incomplete information · Signaling.;

    JEL classification:

    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design

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