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Bargaining Unexplained

  • Dan Usher

    ()

    (Queen's University)

We know that people strike bargains and that civilized life could not proceed otherwise. We do not know how bargains are struck. We have no explanation of bargaining, comparable to the general equilibrium in the economy, accounting for essential features of bargaining as we know it with reference to universal self-interested behaviour subject only to economy-wide rules. This claim is supported here in a survey of the principal models of bargaining: as a reflection of a shared sense of fairness, as an imposed sequence of offers, as a source of transaction cost and as a species of conflict. Also discussed is the dual role of bargaining in politics as a necessary complement to voting and as an impediment to the exploitation of minority groups.

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File URL: http://qed.econ.queensu.ca/working_papers/papers/qed_wp_1208.pdf
File Function: First version 2009
Download Restriction: no

Paper provided by Queen's University, Department of Economics in its series Working Papers with number 1208.

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Length: 55 pages
Date of creation: Aug 2009
Date of revision:
Handle: RePEc:qed:wpaper:1208
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  1. George L. Priest & Benjamin Klein, 1984. "The Selection of Disputes for Litigation," The Journal of Legal Studies, University of Chicago Press, vol. 13(1), pages 1-56, January.
  2. Dan Usher, 2012. "Bargaining and voting," Public Choice, Springer, vol. 151(3), pages 739-755, June.
  3. repec:cup:cbooks:9780521556446 is not listed on IDEAS
  4. Nash, John, 1950. "The Bargaining Problem," Econometrica, Econometric Society, vol. 18(2), pages 155-162, April.
  5. Ariel Rubinstein, 2010. "Perfect Equilibrium in a Bargaining Model," Levine's Working Paper Archive 252, David K. Levine.
  6. Hart, Oliver, 1995. "Firms, Contracts, and Financial Structure," OUP Catalogue, Oxford University Press, number 9780198288817, March.
  7. repec:cup:cbooks:9780521576475 is not listed on IDEAS
  8. Fearon, James D., 1995. "Rationalist explanations for war," International Organization, Cambridge University Press, vol. 49(03), pages 379-414, June.
  9. Garfinkel, Michelle R, 1990. "Arming as a Strategic Investment in a Cooperative Equilibrium," American Economic Review, American Economic Association, vol. 80(1), pages 50-68, March.
  10. Hirshleifer, Jack, 1991. "The Technology of Conflict as an Economic Activity," American Economic Review, American Economic Association, vol. 81(2), pages 130-34, May.
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