Houba, Harold; Wen, Quan - In: Journal of Mathematical Economics 54 (2014) C, pp. 151-156
How to establish the existence of subgame perfect equilibrium (SPE) in bargaining models if no stationary SPEs (SSPEs) exist? The backward-induction technique of Shaked and Sutton (1984, Econometrica) applies to the cyclical structure of SPE payoffs and provides recursive dynamics on the bounds...