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bargaining game in which negotiators can make strategic commitments to durable offers. Commitments decay stochastically, but …
Persistent link: https://www.econbiz.de/10010931181
We use a laboratory experiment to study bargaining with random implementation. We modify the standard Nash demand game … so that incompatible demands do not necessarily lead to the disagreement outcome. Rather, with exogenous probability q …, one bargainer receives his/her demand, with the other getting the remainder. We use an asymmetric bargaining set …
Persistent link: https://www.econbiz.de/10010588271
We study the role of commitment as a source of strategic power in a non-cooperative bargaining game. Two impatient … players bargain about the division of a shrinking surplus under a standard bargaining protocol in discrete time with constant … recognition probabilities. Before bargaining, a player can commit to some part of the surplus. This commitment remains binding …
Persistent link: https://www.econbiz.de/10010603330
Most real-life bargaining is resolved gradually. During this process parties reach intermediate agreements. These … intermediate agreements serve as disagreement points in subsequent rounds. We identify robustness criteria which are satisfied by … three prominent bargaining solutions, the Nash, Proportional (and as a special case to the Egalitarian solution) and …
Persistent link: https://www.econbiz.de/10011049666
The generic alliance game considers players in an alliance who fight against an external enemy. After victory, the alliance may break up, and its members may fight against each other over the spoils of the victory. Our experimental analysis of this game shows: In-group solidarity vanishes after...
Persistent link: https://www.econbiz.de/10010603335
We study a model of conflicts and wars in which the outcome is uncertain not because of luck on the battlefield as in standard models, but because countries lack information about their opponent. In this model expected resource levels and production and military technologies are common...
Persistent link: https://www.econbiz.de/10011049701
We introduce three extensions of the Hirshleifer–Skaperdas conflict game to study experimentally the effects of post-conflict … altogether, often after substantial initial conflict. To attain peace, players must first engage in costly signaling by making …
Persistent link: https://www.econbiz.de/10010785206
We analyze a dynamic market for lemons in which the quality of the good is endogenously determined by the seller. Potential buyers sequentially submit offers to one seller. The seller can make an investment that determines the quality of the item at the beginning of the game, which is...
Persistent link: https://www.econbiz.de/10010753433
I study a bilateral bargaining game in which the size of the surplus follows a stochastic process and in which players … might be optimistic about their bargaining power. Following Yildiz (2003), I model optimism by assuming that players have …
Persistent link: https://www.econbiz.de/10010603332
We study whether allowing players to sign binding contracts governing future play leads to reputation effects in repeated games with long-run players. We proceed by extending the analysis of Abreu and Pearce (2007) by allowing for the possibility that different behavioral types may not be...
Persistent link: https://www.econbiz.de/10010573642