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A Non-cooperative Bargaining Theory with Incomplete Information: Verifiable Types

  • OKADA, Akira

We consider a non-cooperative sequential bargaining game with incomplete information where two players negotiate for mechanisms with ex post verifiable types at the interim stage. We prove the existence of a stationary sequential equilibrium of the bargaining game where the ex post Nash bargaining solution with no delay is asymptotically implemented with probability one. Further, the ex post Nash bargaining solution is a unique outcome of a stationary equilibrium under the property of Independence of Irrelevant Types (IIT), whereby the response of every type of a player is independent of allocations proposed to his other types, and under a self-selection property of their belief. Interim efficiency (insurance benefit) in the Bayesian bargaining problem is not necessarily supported in a non-cooperative approach.

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File URL: http://hermes-ir.lib.hit-u.ac.jp/rs/bitstream/10086/26008/5/070econDP13-15.pdf
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Paper provided by Graduate School of Economics, Hitotsubashi University in its series Discussion Papers with number 2013-15.

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Length: 42 p.
Date of creation: Oct 2014
Date of revision:
Handle: RePEc:hit:econdp:2013-15
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Web page: http://www.econ.hit-u.ac.jp/

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  2. Myerson, Roger B, 1984. "Two-Person Bargaining Problems with Incomplete Information," Econometrica, Econometric Society, vol. 52(2), pages 461-87, March.
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  7. DE CLIPPEL, Geoffroy & MINELLI, Enrico, . "Two-person bargaining with verifiable information," CORE Discussion Papers RP 1733, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  8. Myerson, Roger B, 1979. "Incentive Compatibility and the Bargaining Problem," Econometrica, Econometric Society, vol. 47(1), pages 61-73, January.
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  11. Roger B. Myerson, 1981. "Mechanism Design by an Informed Principal," Discussion Papers 481, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
  12. Okada, Akira, 1996. "A Noncooperative Coalitional Bargaining Game with Random Proposers," Games and Economic Behavior, Elsevier, vol. 16(1), pages 97-108, September.
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  18. John C. Harsanyi & Reinhard Selten, 1972. "A Generalized Nash Solution for Two-Person Bargaining Games with Incomplete Information," Management Science, INFORMS, vol. 18(5-Part-2), pages 80-106, January.
  19. Wilson, Robert B, 1978. "Information, Efficiency, and the Core of an Economy," Econometrica, Econometric Society, vol. 46(4), pages 807-16, July.
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  22. Maskin, Eric & Tirole, Jean, 1992. "The Principal-Agent Relationship with an Informed Principal, II: Common Values," Econometrica, Econometric Society, vol. 60(1), pages 1-42, January.
  23. Maskin, Eric & Tirole, Jean, 1990. "The Principal-Agent Relationship with an Informed Principal: The Case of Private Values," Econometrica, Econometric Society, vol. 58(2), pages 379-409, March.
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  26. Rubinstein, Ariel, 1985. "A Bargaining Model with Incomplete Information about Time Preferences," Econometrica, Econometric Society, vol. 53(5), pages 1151-72, September.
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