A Remark on Bargaining and Non-Expected Utility
We show that a bargaining game of alternating offers with exogenous risk of breakdown and played by dynamically consistent non-expected utility maximizers is formally equivalent to Rubinstein's (1982) game with time preference. Within this game, the behavior of dynamically consistent players is indistinguishable from the behavior of expected utility maximizers.
|Date of creation:||23 Jan 2002|
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|Publication status:||Published in Mathematical Social Sciences, 44(1), 1-15, September 2002.|
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