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Pareto efficiency in the dynamic one-dimensional bargaining model

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  • Tasos Kalandrakis

    () (W. Allen Wallis Institute of Political Economy, 107 Harkness Hall, University of Rochester, Rochester, NY 14627-0158)

Abstract

Pareto dominated agreements are shown to prevail with positive probability in an open set of status quo in a Markov perfect equilibrium of a one-dimensional dynamic bargaining game with endogeneous status-quo. This equilibrium is continuous, symmetric, with dynamic preerences that satisfy the single-plateau proerty. It is also shown that there does not exist a symmetric equilibrium with single-peaked preferences.

Suggested Citation

  • Tasos Kalandrakis, 2014. "Pareto efficiency in the dynamic one-dimensional bargaining model," Wallis Working Papers WP66, University of Rochester - Wallis Institute of Political Economy.
  • Handle: RePEc:roc:wallis:wp66
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    References listed on IDEAS

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    1. Bowen, T. Renee & Zahran, Zaki, 2012. "On dynamic compromise," Games and Economic Behavior, Elsevier, vol. 76(2), pages 391-419.
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    7. Anesi, Vincent, 2010. "Noncooperative foundations of stable sets in voting games," Games and Economic Behavior, Elsevier, vol. 70(2), pages 488-493, November.
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    9. John Duggan & Tasos Kalandrakis & Vikram Manjunath, 2008. "Dynamics of the Presidential Veto: A Computational," Wallis Working Papers WP56, University of Rochester - Wallis Institute of Political Economy.
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    11. Richter, Michael, 2014. "Fully absorbing dynamic compromise," Journal of Economic Theory, Elsevier, vol. 152(C), pages 92-104.
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    1. repec:the:publsh:2215 is not listed on IDEAS
    2. Anesi, Vincent & Duggan, John, 2018. "Existence and indeterminacy of markovian equilibria in dynamic bargaining games," Theoretical Economics, Econometric Society, vol. 13(2), May.
    3. Bowen, T. Renee & Chen, Ying & Eraslan, Hülya & Zápal, Jan, 2017. "Efficiency of flexible budgetary institutions," Journal of Economic Theory, Elsevier, vol. 167(C), pages 148-176.

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