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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 uniform price per unit is more favorable 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 uniform price.

Suggested Citation

  • Valencia-Toledo, Alfredo & Vidal-Puga, Juan, 2019. "A sequential bargaining protocol for land rental arrangements," MPRA Paper 97934, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:97934
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    References listed on IDEAS

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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.

    More about this item

    Keywords

    Bargaining; non-cooperative game; Nash solution; land rental;

    JEL classification:

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

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