Collard-Wexler, Allan; Gowrisankaran, Gautam; Lee, Robin S. - National Bureau of Economic Research (NBER) - 2014
The concept of a Nash equilibrium in Nash bargains, proposed in Horn and Wolinsky (1988), has become the workhorse bargaining model for predicting and estimating the division of surplus in applied analysis of bilateral oligopoly. This paper proposes a non-cooperative foundation for this...