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A sequential bargaining protocol for land rental arrangements

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  • Valencia-Toledo, Alfredo
  • Vidal-Puga, Juan

Abstract

We consider land rental between a single tenant and several lessors. The tenant should negotiate sequentially with each lessor for the available land. In each stage, we apply the Nash bargaining solution. Our results imply that, when all land is necessary, a fixed price per unit is more favourable for the tenant than a lessor-dependent price. Furthermore, a lessor is better off with a lessor-dependent price only when negotiating first. For the tenant, lessors' merging is relevant with lessor-dependent price but not with fixed price.

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  • Valencia-Toledo, Alfredo & Vidal-Puga, Juan, 2017. "A sequential bargaining protocol for land rental arrangements," MPRA Paper 80424, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:80424
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    Cited by:

    1. Matsushima, Noriaki & Shinohara, Ryusuke, 2019. "Pre-negotiation commitment and internalization in public good provision through bilateral negotiations," Journal of Public Economics, Elsevier, vol. 175(C), pages 84-93.

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    More about this item

    Keywords

    Bargaining; non-cooperative game; Nash solution; land rental;
    All these keywords.

    JEL classification:

    • C7 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory
    • 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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