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Distribution of Surplus in Sequential Bargaining with Endogenous Recognition


  • Huseyin Yildirim


I examine a sequential bargaining situation in which agents compete to propose by expending (unproductive) efforts. Depending on the timing of efforts, I consider two types of "recognition" to select the proposer. Whereas "persistent" recognition refers to cases where competition to propose takes place at a pre-bargaining stage as in congressional committee assignments, "transitory" recognition represents cases where competition to propose is recurring throughout the bargaining as in international negotiations and legal battles. Equilibrium analyses of two recognition types reveal that (1) surplus is distributed more unequally under persistent recognition; (2) social cost is higher under persistent recognition if and only if it attracts a sufficient number of "active" bargainers, who exert a positive effort to propose; and (3) as the number of agents increases, each agent may actually have a greater incentive to propose under transitory recognition, while this incentive is always diminished under persistent recognition.

Suggested Citation

  • Huseyin Yildirim, 2010. "Distribution of Surplus in Sequential Bargaining with Endogenous Recognition," Working Papers 10-17, Duke University, Department of Economics.
  • Handle: RePEc:duk:dukeec:10-17

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    Cited by:

    1. Ali, S. Nageeb, 2015. "Recognition for sale," Journal of Economic Theory, Elsevier, vol. 155(C), pages 16-29.
    2. repec:eee:ecolet:v:163:y:2018:i:c:p:102-105 is not listed on IDEAS
    3. Hakan Genç & Serkan Küçükşenel, 2018. "Bargaining In Legislatures Over Private And Public Goods With Endogenous Recognition," ERC Working Papers 1805, ERC - Economic Research Center, Middle East Technical University, revised Mar 2018.

    More about this item


    Sequential bargaining; Persistent recognition; Transitory recognition; Distribution of surplus; Rent-seeking contests;

    JEL classification:

    • C70 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - General
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior


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