IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this paper or follow this series

Mediation: Incomplete information bargaining with filtered communication

We analyze a continuous-time bilateral double auction in the presence of two-sided incomplete information and a smallest money unit. A distinguishing feature of our model is that intermediate concessions are not observable by the adversary: they are only communicated to a passive auctioneer. An alternative interpretation is that of mediated bargaining. We show that an equilibrium using only the extreme agreements always exists and display the necessary and sufficient condition for the existence of (perfect Bayesian) equilibria which yield intermediate agreements. For the symmetric case with uniform type distribution we numerically calculate the equilibria. We find that the equilibrium which does not use compromise agreements is the least efficient, however, the rest of the equilibria yield the lower social welfare the higher number of compromise agreements are used.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://www.econ.ed.ac.uk/papers/id75_esedps.pdf
Download Restriction: no

Paper provided by Edinburgh School of Economics, University of Edinburgh in its series ESE Discussion Papers with number 75.

as
in new window

Length: 34
Date of creation: Nov 2001
Date of revision:
Handle: RePEc:edn:esedps:75
Contact details of provider: Postal:
31 Buccleuch Place, EH8 9JT, Edinburgh

Phone: +44(0)1316508361
Fax: +44(0)1316504514
Web page: http://www.econ.ed.ac.uk/

More information through EDIRC

References listed on IDEAS
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.:

as in new window
  1. Leininger, W. & Linhart, P. B. & Radner, R., 1989. "Equilibria of the sealed-bid mechanism for bargaining with incomplete information," Journal of Economic Theory, Elsevier, vol. 48(1), pages 63-106, June.
  2. Ausubel, Lawrence M & Deneckere, Raymond J, 1992. "Bargaining and the Right to Remain Silent," Econometrica, Econometric Society, vol. 60(3), pages 597-625, May.
  3. Sakovics Jozsef, 1993. "Delay in Bargaining Games with Complete Information," Journal of Economic Theory, Elsevier, vol. 59(1), pages 78-95, February.
  4. Satterthwaite, Mark A. & Williams, Steven R., 1989. "Bilateral trade with the sealed bid k-double auction: Existence and efficiency," Journal of Economic Theory, Elsevier, vol. 48(1), pages 107-133, June.
  5. Broman, Elizabeth M., 1989. "The bilateral monopoly model: Approaching certainty under the split-the-difference mechanism," Journal of Economic Theory, Elsevier, vol. 48(1), pages 134-151, June.
  6. Erik van Damme & Reinhard Selten & Eyal Winter, 1989. "Alternating Bid Bargaining with a Smallest Money Unit," Discussion Paper Serie A 253, University of Bonn, Germany.
  7. Gresik, Thomas A., 1996. "Incentive-Efficient Equilibria of Two-Party Sealed-Bid Bargaining Games," Journal of Economic Theory, Elsevier, vol. 68(1), pages 26-48, January.
  8. repec:oup:restud:v:57:y:1990:i:4:p:575-95 is not listed on IDEAS
  9. repec:oup:restud:v:59:y:1992:i:4:p:795-812 is not listed on IDEAS
  10. Ponsati C. & Sakovics, J., 1996. "The war of attrition with incomplete information," Mathematical Social Sciences, Elsevier, vol. 31(1), pages 54-54, February.
  11. Ausubel, Lawrence M. & Cramton, Peter & Deneckere, Raymond J., 2002. "Bargaining with incomplete information," Handbook of Game Theory with Economic Applications, in: R.J. Aumann & S. Hart (ed.), Handbook of Game Theory with Economic Applications, edition 1, volume 3, chapter 50, pages 1897-1945 Elsevier.
  12. repec:adr:anecst:y:1992:i:25-26:p:04 is not listed on IDEAS
  13. repec:oup:restud:v:60:y:1993:i:2:p:435-61 is not listed on IDEAS
  14. repec:oup:restud:v:50:y:1983:i:2:p:221-47 is not listed on IDEAS
  15. D. Abreu & F. Gul, 1998. "Bargaining and Reputation," Princeton Economic Theory Papers 00s9, Economics Department, Princeton University.
  16. repec:oup:restud:v:65:y:1998:i:3:p:573-94 is not listed on IDEAS
  17. repec:oup:restud:v:51:y:1984:i:4:p:579-93 is not listed on IDEAS
  18. repec:oup:restud:v:59:y:1992:i:1:p:205-25 is not listed on IDEAS
  19. repec:oup:restud:v:54:y:1987:i:3:p:345-64 is not listed on IDEAS
Full references (including those not matched with items on IDEAS)

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:edn:esedps:75. 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: (Gina Reddie)

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 references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.

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

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.