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Bargaining order and delays in multilateral bargaining with asymmetric sellers

Author

Listed:
  • Amit Kumar Maurya

    (Indira Gandhi Institute of Development Research)

  • Shubhro Sarkar

    (Indira Gandhi Institute of Development Research)

Abstract

In a multilateral bargaining problem with one buyer and two heterogeneous sellers owning perfectly complementary units, we find that there exists an equilibrium which leads to inefficient delays when the buyer negotiates with the higher-valuation seller first and where players are extremely impatient. We also find that the buyer prefers to negotiate with the lower-valuation seller first, except in an equilibrium where both the buyer and the lower-valuation seller choose to play strategies that lead negotiations between them to hold out.

Suggested Citation

  • Amit Kumar Maurya & Shubhro Sarkar, 2013. "Bargaining order and delays in multilateral bargaining with asymmetric sellers," Indira Gandhi Institute of Development Research, Mumbai Working Papers 2013-015, Indira Gandhi Institute of Development Research, Mumbai, India.
    • Handle: RePEc:ind:igiwpp:2013-015
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    File URL: http://www.igidr.ac.in/pdf/publication/WP-2013-015.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. Silvana Krasteva & Huseyin Yildirim, 2012. "Payoff uncertainty, bargaining power, and the strategic sequencing of bilateral negotiations," RAND Journal of Economics, RAND Corporation, vol. 43(3), pages 514-536, September.
    3. Cai, Hongbin, 2000. "Delay in Multilateral Bargaining under Complete Information," Journal of Economic Theory, Elsevier, vol. 93(2), pages 260-276, August.
    4. Jun Xiao, 2012. "Bargaining Order in a Multi-Person Bargaining Game," Department of Economics - Working Papers Series 1150, The University of Melbourne.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Multilateral bargaining; Bargaining order; Asymmetric sellers; Complete information; Subgame Perfection;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory

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