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Bargaining over a common conceptual space

  • Marco LiCalzi

    ()

    (Dept. of Management, Università Ca' Foscari Venezia)

  • Nadia Maagli

    ()

    (UniversitŽ Paris-1-Pantheon-Sorbonne)

Two agents endowed with different individual conceptual spaces are engaged in a dialectic process to reach a common understanding. We model the process as a simple noncooperative game and demonstrate three results. When the initial disagreement is focused, the bargaining process has a zero-sum structure. When the disagreement is widespread, the zero-sum structure disappears and the unique equilibrium requires a retraction of consensus: two agents who individually agree to associate a region with the same concept end up rebranding it as a different concept. Finally, we document a conversers' dilemma: such equilibrium outcome is Pareto-dominated by a cooperative solution that avoids retraction.

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Paper provided by Department of Management, Università Ca' Foscari Venezia in its series Working Papers with number 30.

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Length: 19 pages
Date of creation: Dec 2013
Date of revision:
Handle: RePEc:vnm:wpdman:66
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  1. Wernerfelt, Birger, 2003. "Organizational Languages," Working papers 4278-03, Massachusetts Institute of Technology (MIT), Sloan School of Management.
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