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Reason-Based Choice: A Bargaining Rationale for the Attraction and Compromise Effects
de Clippel, Geoffroy; Eliaz, Kfir - C.E.P.R. Discussion Papers - 2009
This paper proposes a model of boundedly rational choice that explains the well known attraction and compromise effects. Choices in our model are interpreted as a cooperative solution to a bargaining problem among an individual’s conflicting dual selves. We axiomatically characterize a unique...
Persistent link: https://www.econbiz.de/10004976794
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Vertically Related Markets and Trade Policy in a Bargaining Framework
Karp, Larry; Sioli, Lucy - C.E.P.R. Discussion Papers - 1995
We analyse the interaction of asymmetric industries in international vertically related markets. Each downstream firm bargains efficiently with its domestic supplier in a first stage and with the foreign supplier in a second stage. The asymmetry in upstream costs leads to inter-industry trade....
Persistent link: https://www.econbiz.de/10005789162
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Modelling Negotiated Decision Making: A Multilateral, Multiple Issues, Non-Cooperative Bargaining Model with Uncertainty
Carraro, Carlo; Sgobbi, Alessandra - C.E.P.R. Discussion Papers - 2007
-cooperative game theory approach. We develop a computational model which simulates the process of negotiation among more than two …
Persistent link: https://www.econbiz.de/10005791640
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A Stochastic Multiple Players Multi-Issues Bargaining Model for the Piave River Basin
Carraro, Carlo; Sgobbi, Alessandra - C.E.P.R. Discussion Papers - 2007
The objective of this paper is to investigate the usefulness of non-cooperative bargaining theory for the analysis of … negotiations on water allocation and management. We explore the impacts of different economic incentives, a stochastic environment … multilateral, multiple issues, non-cooperative bargaining model of water allocation in the Piave River Basin, in the North East of …
Persistent link: https://www.econbiz.de/10005791729
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Bargaining in Mergers and Termination Fees
Rosenkranz, Stephanie; Weitzel, Utz - C.E.P.R. Discussion Papers - 2007
We model takeovers as a bargaining process and explain termination fees for, both, the target and the acquirer, subject to parties’ bargaining power and outside options. In equilibrium, termination fees are offered by firms with outside options in exchange for a greater share of merger...
Persistent link: https://www.econbiz.de/10005498188
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Renegotiation Before Contract Execution
Wambach, Achim - C.E.P.R. Discussion Papers - 1999
By offering or choosing a contract the informed agent might reveal information to the principal which could be used for immediate renegotiation. This is discussed in an axiomatic approach. We show that if, given the revealed information, there exists a contract which is preferred by everyone,...
Persistent link: https://www.econbiz.de/10005504482
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Prudence in Bargaining: The Effect of Uncertainty on Bargaining Outcomes
White, Lucy - C.E.P.R. Discussion Papers - 2006
We investigate the outcome of bargaining when a player’s pay-off from agreement is risky. We find that a risk-averse player typically increases his equilibrium receipts when his pay-off is made risky. This is because the presence of risk makes individuals behave 'more patiently' in bargaining....
Persistent link: https://www.econbiz.de/10005666445
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The Illusion of School Choice: Empirical Evidence from Barcelona
Calsamiglia, Caterina; Güell, Maia - C.E.P.R. Discussion Papers - 2014
priorities: (1) the gains in terms of matching seem limited, because the equilibrium allocation is not very different from a …
Persistent link: https://www.econbiz.de/10011084223
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On the Nature of Fair Behaviour
Falk, Armin; Fehr, Ernst; Fischbacher, Urs - C.E.P.R. Discussion Papers - 2001
This Paper shows that identical offers in an ultimatum game generate systematically different rejection rates depending on the other offers that are available to the proposer. This result casts doubt on the consequentialist practice in economics of defining the utility of an action solely in...
Persistent link: https://www.econbiz.de/10005661687
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The Excess Power Puzzle of the EU Budget
Kauppi, Heikki; Widgrén, Mika - C.E.P.R. Discussion Papers - 2009
allocation in advance. In the current status quo, France and Spain are the clearest winners of these restrictions, while Austria …
Persistent link: https://www.econbiz.de/10004972167