Two parties bargaining over a pie, the size of which is determined by their previous investment decisions. The bargaining rule is sensitive to investment behavior. Two games are considered. In both, bargaining proceeds according to the Nash Demand Game when a symmetric investments profile is...

In this paper we study a two agents asymmetric stag hunt game. The model has an infinity of strict, Pareto rankable Nash equilibria. The equilibrium selection problem is solved by appealing to the stochastic stability concept put forward by Young (1993). We prove two main results. When the...

This paper proposes an interpretation of the experimental evidence on tacit coordination games involving randomly matched players provided by Van Huyck, Battalio and Beil (1990), based on the notion of stochastic stability. When the model is calibrated with the parameters chosen in the...

Two parties bargaining over a pie, the size of which is determined by their previous investment decisions. The bargaining rule is sensitive to investment behavior. Two games are considered. In both, bargaining proceeds according to the Nash Demand Game when a symmetric investments profile is...

Two parties bargaining over a pie, the size of which is determined by their previous investment decisions. The bargaining rule is sensitive to investment behavior. Two games are considered. In both, bargaining proceeds according to the Nash Demand Game when a symmetric investments profile is...

Two parties bargaining over a pie whose size is determined by the investment decisions of both. The bargaining rule is sensitive to the investment behavior. If a symmetric investments pro le is observed, bargaining proceeds according to the Nash Demand Game; otherwise bargaining proceeds...

Two parties bargaining over a pie, the size of which is determined by their previous investment decisions. The bargaining rule is sensitive to investment behavior. Two games are considered. In both, bargaining proceeds according to the Nash Demand Game when a symmetric investments profi le is...

Two parties bargaining over a pie, the size of which is determined by their previous investment decisions. Investment costs are heterogeneous. The bargaining rule is sensitive to investment behavior. Two games are studied, which differ for the considered sociopolitical structure: communal...