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Strategic Bargaining in Search Models: An Overview

Author

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  • Jayasena, Arun
  • Libir, Mumi
  • Rahmat, Omar

Abstract

This paper provides a survey on strategic bargaining in decentralized markets with search frictions. We review how alternating-offers bargaining, renegotiation risks, and participation constraints shape outcomes in both random and directed search environments. We discuss implications for labor, product, and credit markets, with particular attention to cases where posted terms do not fully determine final outcomes.

Suggested Citation

  • Jayasena, Arun & Libir, Mumi & Rahmat, Omar, 2021. "Strategic Bargaining in Search Models: An Overview," MPRA Paper 124947, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:124947
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    File URL: https://mpra.ub.uni-muenchen.de/124947/1/MPRA_paper_124947.pdf
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    References listed on IDEAS

    as
    1. Pierre Cahuc & Fabien Postel-Vinay & Jean-Marc Robin, 2006. "Wage Bargaining with On-the-Job Search: Theory and Evidence," Econometrica, Econometric Society, vol. 74(2), pages 323-364, March.
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    More about this item

    Keywords

    Strategic Bargaining; Search Models;

    JEL classification:

    • D40 - Microeconomics - - Market Structure, Pricing, and Design - - - General
    • L00 - Industrial Organization - - General - - - General

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