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We study bilateral bargaining problems with interested third parties, the stakeholders that enjoy benefits upon a … potential willingness of the stakeholder to make contributions to promote agreement may be the source of severe inefficiency …. However, and more surprisingly, for a wide range of parameter values this outcome is better for the stakeholder than if he …
Persistent link: https://www.econbiz.de/10005566476
We develop a model of the household in which spousal incomes are determined by premarital investments, the marriage market is characterized by assortative matching, and endogenously-determined sharing rules form the basis of intra-household allocations. By incorporating pre-marital investments...
Persistent link: https://www.econbiz.de/10005703128
In this paper we derive an explicit model of negotiations between spouses when utility is (partially) transferable only in case of separation. We show that inefficient separation may occur in equilibrium even under consensual divorce law. This provides theoretical support for the view that...
Persistent link: https://www.econbiz.de/10005703338
We model the bargaining process of parents over custody at the time of divorce. First we assume an institutional …
Persistent link: https://www.econbiz.de/10005763662
In his classic article "An Essay on Bargaining" Schelling (1956) argues that ignorance might actually be strength … rather than weakness. We test and confirm Schelling's conjecture in a simple take-it-or-leave bargaining experiment where the …
Persistent link: https://www.econbiz.de/10009371183
We experimentally investigate multiple notions of equity in ultimatum bargaining with asymmetric outside options …
Persistent link: https://www.econbiz.de/10010884149
function can be explained by Nash bargaining between workers and employers. Under fairly mild assumptions, Nash bargaining … exceed the wage reward. This paper reviews the established empirical regularities and then provides Nash bargaining results …
Persistent link: https://www.econbiz.de/10010959628
An important paper by Chiappori et al. (2012) has proposed an elegant and parsimonious model of spousal matching over multi-dimensional characteristics. Importantly, the model suggests specific testable assumptions that allow researchers to uncover marginal rates of substitution (MRS) between...
Persistent link: https://www.econbiz.de/10011214039
The undersupply of spots in German daycare facilities for toddlers challenges parents' possibilities to work. To ease the situation, the government implemented a new law entitling every child between ages one and three to daycare supervision for about four hours per day. Nevertheless, the...
Persistent link: https://www.econbiz.de/10011265297
Consider a model of bargaining, in which two players, 1 and 2, share a pie of size y. The bargaining environment is … a Nash bargaining solution, we investigate the empirical content of this assumption. We first show that in the most … sense that ?i does not influence the utility or the threat point of player j ? i, then Nash bargaining generates strong …
Persistent link: https://www.econbiz.de/10005233879