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On the Strategic Disclosure of Feasible Options in Bargaining

de Clippel, Geoffroy; Eliaz, Kfir - C.E.P.R. Discussion Papers - 2011

Most of the economic literature on bargaining has focused on situations where the set of possible outcomes is taken as … before they bargain over which of them is selected. Our objective is to understand how different bargaining institutions … affect the incentives to disclose possible solutions to the bargaining problem, where inefficiency may arise when both …

Persistent link: https://www.econbiz.de/10008854532

Bargaining with Informational Externalities in a Market Equilibrium

Drugov, Mikhail - C.E.P.R. Discussion Papers - 2014

This paper studies a dynamic bargaining model with informational externalities between bargaining pairs. Two principals …

Persistent link: https://www.econbiz.de/10011083946

Procurement when Price and Quality Matter

Asker, John; Cantillon, Estelle - C.E.P.R. Discussion Papers - 2007

A buyer seeks to procure a good characterized by its price and its quality from suppliers who have private information about their cost structure (fixed cost + marginal cost of providing quality). We solve for the optimal buying procedure, i.e. the procedure that maximizes the buyer's expected...

Persistent link: https://www.econbiz.de/10005661783

Optimal Procurement When Both Price and Quality Matter

Asker, John; Cantillon, Estelle - C.E.P.R. Discussion Papers - 2005

A buyer seeks to procure a good characterized by its price and its quality from suppliers who have private information about their cost structure (fixed cost + marginal cost of providing quality). We solve for the optimal buying mechanism, i.e. the procedure that maximizes the buyer’s expected...

Persistent link: https://www.econbiz.de/10005123964

A Theory of Brinkmanship, Conflicts, and Commitments

Schwarz, Michael; Sonin, Konstantin - C.E.P.R. Discussion Papers - 2005

power. When parties are risk-averse, a self-enforcing peace agreement may not be feasible. The bargaining power of the …Many conflicts and negotiations can be viewed as a dynamic game, where parties have no commitment power. In our model …

Persistent link: https://www.econbiz.de/10005114441

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

Open Covenants, Privately Arrived At

Fingleton, John; Raith, Michael - C.E.P.R. Discussion Papers - 2001

This Paper analyses strategic bargaining between two agents each of whom negotiates on behalf of a principal. The … principals face uncertainty about the bargaining skills of their agents as measured by the agents' abilities to assess the … bargaining behaviour. We compare two different scenarios: open-door bargaining, where the principals observe the entire …

Persistent link: https://www.econbiz.de/10005067665

Competitive Insurance Markets Under Adverse Selection and Capacity Constraints

Inderst, Roman; Wambach, Achim - C.E.P.R. Discussion Papers - 1999

Ever since the seminal work by Rothschild and Stiglitz (1976) on competitive insurance markets under adverse selection the equilibrium-non-existence problem has been one of the major puzzles in insurance economics. We extend the original analysis by considering firms that face capacity...

Persistent link: https://www.econbiz.de/10005661929

The Theory of Human Capital Revisited: On the Interaction of General and Specific Investments

Kessler, Anke; Lülfesmann, Christoph - C.E.P.R. Discussion Papers - 2000

Human capital theory distinguishes between training in general-usage and firm-specific skills. In his seminal work, Becker (1964) argues that employers will not be willing to invest in general training when labour markets are competitive. However, they are willing to invest in specific training...

Persistent link: https://www.econbiz.de/10005666647

Durable Goods with Quality Differentiation

Inderst, Roman - C.E.P.R. Discussion Papers - 2003

their product and price policy sufficiently rapidly - which reduces their commitment power - we find that the whole market …

Persistent link: https://www.econbiz.de/10005789022