Relative concerns and delays in bargaining with private information
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 on the bargaining outcome and the delay in reaching an agreement. We find that facing an opponent having 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.
|Date of creation:||09 Jul 2013|
|Date of revision:|
|Contact details of provider:|| Postal: Voie du Roman Pays 34, 1348 Louvain-la-Neuve (Belgium)|
Fax: +32 10474304
Web page: http://www.uclouvain.be/core
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- 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.
- Fleurbaey,Marc & Maniquet,François, 2011.
"A Theory of Fairness and Social Welfare,"
Cambridge University Press, number 9780521715348, November.
- Ed Hopkins, 2008.
"Inequality, Happiness and Relative Concerns: What Actually is their Relationship?,"
ESE Discussion Papers
180, Edinburgh School of Economics, University of Edinburgh.
- Ed Hopkins, 2008. "Inequality, happiness and relative concerns: What actually is their relationship?," Journal of Economic Inequality, Springer, vol. 6(4), pages 351-372, December.
- Ed Hopkins, 2008. "Inequality, Happiness and Relative Concerns: What Actually is their Relationship?," Levine's Bibliography 122247000000001896, UCLA Department of Economics.
- Hopkins, Ed, 2008. "Inequality, Happiness and Relative Concerns: What Actually is their Relationship?," SIRE Discussion Papers 2008-01, Scottish Institute for Research in Economics (SIRE).
- Rubinstein, Ariel, 1982.
"Perfect Equilibrium in a Bargaining Model,"
Econometric Society, vol. 50(1), pages 97-109, January.
- Ernst Fehr & Klaus M. Schmidt, 1999.
"A Theory of Fairness, Competition, and Cooperation,"
The Quarterly Journal of Economics,
Oxford University Press, vol. 114(3), pages 817-868.
- Fehr, Ernst & Schmidt, Klaus M., . "A theory of fairness, competition, and cooperation," Chapters in Economics, University of Munich, Department of Economics.
- Fehr, Ernst & Schmidt, Klaus M., 1998. "A Theory of Fairness, Competition and Cooperation," CEPR Discussion Papers 1812, C.E.P.R. Discussion Papers.
- Ernst Fehr & Klaus M. Schmidt, . "A Theory of Fairness, Competition and Cooperation," IEW - Working Papers 004, Institute for Empirical Research in Economics - University of Zurich.
- Fehr, Ernst & Schmidt, Klaus M., 1999. "A theory of fairness, competition, and cooperation," Munich Reprints in Economics 20650, University of Munich, Department of Economics.
- Clark, Andrew E. & Oswald, Andrew J., 1994.
"Satisfaction and comparison income,"
CEPREMAP Working Papers (Couverture Orange)
- Cramton, Peter C & Tracy, Joseph S, 1994.
"The Determinants of U.S. Labor Disputes,"
Journal of Labor Economics,
University of Chicago Press, vol. 12(2), pages 180-209, April.
- Jean-François Caulier & Ana Mauleon & Vincent Vannetelbosch, 2015.
"Allocation rules for coalitional network games,"
Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers)
- Duranton, Gilles & Martin, Philippe & Mayer, Thierry & Mayneris, Florian, 2010. "The Economics of Clusters: Lessons from the French Experience," OUP Catalogue, Oxford University Press, number 9780199592203, June.
- 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.
- Ana MAULEON & Vincent J. VANNETELBOSCH, 2002. "Strategic Union Delegation and Strike Activity," Discussion Papers (IRES - Institut de Recherches Economiques et Sociales) 2002011, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
- MAULEON, Ana & VANNETELBOSCH, Vincent, . "Strategic union delegation and strike activity," CORE Discussion Papers RP 1766, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Houba, Harold & Wen, Quan, 2011. "Extreme equilibria in the negotiation model with different time preferences," Games and Economic Behavior, Elsevier, vol. 73(2), pages 507-516.
- Axel Ockenfels & Gary E. Bolton, 2000. "ERC: A Theory of Equity, Reciprocity, and Competition," American Economic Review, American Economic Association, vol. 90(1), pages 166-193, March.
- Avery Christopher & Zemsky Peter B., 1994. "Money Burning and Multiple Equilibria in Bargaining," Games and Economic Behavior, Elsevier, vol. 7(2), pages 154-168, September.
- Hongbin Cai, 2003. "Inefficient Markov perfect equilibria in multilateral bargaining," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 22(3), pages 583-606, October.
- Joel Watson, 1998. "Alternating-Offer Bargaining with Two-Sided Incomplete Information," Review of Economic Studies, Oxford University Press, vol. 65(3), pages 573-594.
When requesting a correction, please mention this item's handle: RePEc:cor:louvco:2013034. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Alain GILLIS)
If references are entirely missing, you can add them using this form.