Imai, Haruo; Salonen, Hannu - 2012
We study a Baron-Ferejohn (1989) type of bargaining model to which we append an investment stage. As long as no … accept it. Prior to the bargaining stage, players may make investments to increase their recognition probabili- ties in the … bargaining game. The investment stage is modeled in the standard way, first suggested by Tullock (1980). When investment costs …