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Uncertainty, bargaining power and bargaining solutions: An empirical application

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  • Klein, Gordon
  • Rebolledo, Mayra

Abstract

We compare the traditional model for structurally estimating bargaining power solutions assuming certainty on the disagreement payoffs against a model assuming evenly distributed bargaining power and uncertainty on disagreement profits. We find substantial differences in the distribution of the rent resulted from each of these models and it was hinted how the assumptions may have a role on the identification of the rent's distribution

Suggested Citation

  • Klein, Gordon & Rebolledo, Mayra, 2020. "Uncertainty, bargaining power and bargaining solutions: An empirical application," CAWM Discussion Papers 115, University of Münster, Münster Center for Economic Policy (MEP).
    • Handle: RePEc:zbw:cawmdp:115
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    References listed on IDEAS

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    1. Chun, Youngsub & Thomson, William, 1990. "Nash solution and uncertain disagreement points," Games and Economic Behavior, Elsevier, vol. 2(3), pages 213-223, September.
    2. Michaela Draganska & Daniel Klapper & Sofia B. Villas-Boas, 2010. "A Larger Slice or a Larger Pie? An Empirical Investigation of Bargaining Power in the Distribution Channel," Marketing Science, INFORMS, vol. 29(1), pages 57-74, 01-02.
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    4. David Revelt & Kenneth Train, 1998. "Mixed Logit With Repeated Choices: Households' Choices Of Appliance Efficiency Level," The Review of Economics and Statistics, MIT Press, vol. 80(4), pages 647-657, November.
    5. Klein, Gordon & Rebolledo, Mayra, 2020. "Uncertainty and bargaining: A structural econometric approach," CAWM Discussion Papers 114, University of Münster, Münster Center for Economic Policy (MEP).
    6. A. Colin Cameron & Pravin K. Trivedi, 2010. "Microeconometrics Using Stata, Revised Edition," Stata Press books, StataCorp LLC, number musr, August.
    7. Céline Bonnet & Zohra Bouamra-Mechemache, 2016. "Organic Label, Bargaining Power, and Profit-sharing in the French Fluid Milk Market," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 98(1), pages 113-133.
    8. Train,Kenneth E., 2009. "Discrete Choice Methods with Simulation," Cambridge Books, Cambridge University Press, number 9780521747387, August.
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