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The Game of Negotiations: Ordering Issues and Implementing Agreements

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Abstract

We use a two-issue bargaining model with asymmetric information to study agent choice of how to structure bargaining. We uncover the settings in which different agenda structures are chosen in equilibrium, how the order in which issues are bargained over matters, and what impact the rules for implementing agreements have. If agreements are implemented as they are reached, ``easy'' issues are negotiated first and ``hard'' issues later; if agreements are implemented only after all issues are settled, then it is size that matters, with large issues settled first. All parties prefer the former rules of implementation to the latter.

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  • Lutz-Alexander Busch & Ignatius J. Horstmann, 2000. "The Game of Negotiations: Ordering Issues and Implementing Agreements," UWO Department of Economics Working Papers 200010, University of Western Ontario, Department of Economics.
  • Handle: RePEc:uwo:uwowop:200010
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    1. repec:spr:grdene:v:18:y:2009:i:2:d:10.1007_s10726-008-9119-9 is not listed on IDEAS
    2. Louta, Malamati & Roussaki, Ioanna & Pechlivanos, Lambros, 2008. "An intelligent agent negotiation strategy in the electronic marketplace environment," European Journal of Operational Research, Elsevier, vol. 187(3), pages 1327-1345, June.
    3. In, Younghwan & Serrano, Roberto, 2004. "Agenda restrictions in multi-issue bargaining," Journal of Economic Behavior & Organization, Elsevier, vol. 53(3), pages 385-399, March.
    4. Busch, Lutz Alexander & Muthoo, Abhinay, 2003. "Power and Inefficient Institutions," Economics Discussion Papers 8862, University of Essex, Department of Economics.
    5. Alejandro Caparrós, 2016. "Bargaining and International Environmental Agreements," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 65(1), pages 5-31, September.
    6. Oleksandr Zhylyevskyy, 2012. "Spousal Conflict and Divorce," Journal of Labor Economics, University of Chicago Press, vol. 30(4), pages 915-962.
    7. Alos-Ferrer, Carlos & Ritzberger, Klaus, 2017. "Multi-Lateral Strategic Bargaining Without Stationarity," Economics Series 332, Institute for Advanced Studies.

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