Showing 1 - 10 of 111
We consider infinite-horizon bargaining in which an uninformed seller sequentially makes a price offer to a privately informed buyer who decides whether to accept or reject it in every bargaining round. Existing theories suggest that the presence (absence) of an arbitrarily small outside option...
Persistent link: https://www.econbiz.de/10014077327
I revisit the Rubinstein (1982) model for the classic problem of price haggling and show that bargaining can become a “trap,” where equilibrium leaves one party strictly worse off than if no transaction took place (e.g., the equilibrium price exceeds a buyer’s valuation). This arises when...
Persistent link: https://www.econbiz.de/10014077332
We frame sustainability problems as bargaining problems among stakeholders who have to agree on a common development path. For infinite alternatives, the set of feasible payoffs is unknown, limiting the possibility to apply classical bargaining theory and mechanisms. We define a framework...
Persistent link: https://www.econbiz.de/10012892119
We study experimentally the impact of pre-play social interactions on negotiations. These interactions are often …
Persistent link: https://www.econbiz.de/10012892146
Real-world negotiations differ fundamentally from existing bargaining theory. Inspired by the Paris Agreement on …
Persistent link: https://www.econbiz.de/10012892276
We report experimental findings on the role of charitable promises in bargaining settings. We vary the enforceability of such promises within variants of ultimatum games where the proposer suggest a split between himself, the responder and a charitable donation. By reneging on initial pledges,...
Persistent link: https://www.econbiz.de/10013223664
We consider a public-private partnership in an infrastructure project, which requires specialised expertise during the construction stage for the infrastructure to operationalise. This entails that, after an investment is made to begin building the infrastructure, its construction is completed...
Persistent link: https://www.econbiz.de/10012860529
We introduce a model of product development in a firm. Our model describes the process as a multi-stage contest (i.e., race) with an endogenous length (with one stage or two stages) between two workers. We model the payments to workers from the new product using the normatively appealing Nash...
Persistent link: https://www.econbiz.de/10012841137
Every government that controls an exhaustible resource must decide whether to exploit it or to conserve and thereby let the subsequent government decide whether to exploit or conserve. This paper develops a model of this situation and shows when a small probability that some future government...
Persistent link: https://www.econbiz.de/10012834349
This paper scrutinizes the effects of the European Directive on Copyright in the Digital Single Market on platform competition in media markets. Platforms that are Online Content-Sharing Service Providers must have a license agreement with collective management organizations that control the...
Persistent link: https://www.econbiz.de/10013298600