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A Note on Bargaining over Complementary Pieces of Information in Networks

Author

Listed:
  • Kaniska Dam

    () (Division of Economics, CIDE)

  • Antonio Jiménez-Martínez

    () (Division of Economics, CIDE)

Abstract

We consider two specific network structures, the star and the line, and study the set of bilateral alternating-offers bargaining procedures for the pairs of connected agents. Agents have complementary information and bargain over the relative price of their pieces of information. We characterize the unique subgame perfect equilibrium outcome for each of these network structures.

Suggested Citation

  • Kaniska Dam & Antonio Jiménez-Martínez, 2011. "A Note on Bargaining over Complementary Pieces of Information in Networks," Working papers DTE 504, CIDE, División de Economía.
  • Handle: RePEc:emc:wpaper:dte504
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    File URL: http://cide.edu/repec/economia/pdf/DTE504.pdf
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    References listed on IDEAS

    as
    1. Rubinstein, Ariel, 1982. "Perfect Equilibrium in a Bargaining Model," Econometrica, Econometric Society, vol. 50(1), pages 97-109, January.
    2. Jeanne Hagenbach & Frédéric Koessler, 2010. "Strategic Communication Networks," Review of Economic Studies, Oxford University Press, vol. 77(3), pages 1072-1099.
    3. Polanski, Arnold, 2007. "A decentralized model of information pricing in networks," Journal of Economic Theory, Elsevier, vol. 136(1), pages 497-512, September.
    4. Corominas-Bosch, Margarida, 2004. "Bargaining in a network of buyers and sellers," Journal of Economic Theory, Elsevier, vol. 115(1), pages 35-77, March.
    5. Abreu, Dilip & Manea, Mihai, 2012. "Bargaining and efficiency in networks," Journal of Economic Theory, Elsevier, vol. 147(1), pages 43-70.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Bargaining; Information; Networks;

    JEL classification:

    • D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation

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