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We analyze an infinite stage, alternating offer bargaining game in which the buyer knows the gains from trade but the … length of bargaining …
Persistent link: https://www.econbiz.de/10012755371
, and test its implications using millions of online bargaining interactions. Items listed at multiples of $100 receive …
Persistent link: https://www.econbiz.de/10013020716
We study a model of social learning and communication using hard anecdotal evidence. There are two Bayesian agents (a sender and a receiver) who wish to communicate. The receiver must take an action whose payoff depends on their personal preferences and an unknown state of the world. The sender...
Persistent link: https://www.econbiz.de/10014243362
, if the debtor country is unable to meet debt obligations, a bargaining regime determines the amount of debt repayment. In … the bargaining game will therefore be dependent (among other things) on the level of production in the debtor country. In … this framework, the paper shows that productive investment may increase or decrease the bargaining power of the debtor …
Persistent link: https://www.econbiz.de/10012774533
international capital markets. The creditor can forgive portions of the outstanding debt so that a real-time bargaining process …
Persistent link: https://www.econbiz.de/10013248422
Using actual trade and tariff data for the United States and the European Community, this paper demonstrates how a trade negotiation such as the Tokyo Round, can be modelled as a game among countries attempting to minimize individual welfare loss functions. Once welfare functions are...
Persistent link: https://www.econbiz.de/10013322334
Bargaining breakdown—whether as delay, conflict, or missing trade—plagues bargaining in environments with incomplete … information. Can a bargaining environment that facilitates or restricts communication alleviate these costs? We exploit a unique …, using text analysis, that the dynamics are consistent with repeat players learning how to use communication in bargaining …
Persistent link: https://www.econbiz.de/10014091401
We present a model of a financial market where some traders are "cursed" when choosing how much to invest in a risky asset, failing to fully take into account what prices convey about others' private information. Cursed traders put more weight on their private signals than rational traders. But...
Persistent link: https://www.econbiz.de/10013021869
Global games of regime change -- that is, coordination games of incomplete information in which a status quo is abandoned once a sufficiently large fraction of agents attacks it -- have been used to study crises phenomena such as currency attacks, bank runs, debt crises, and political change. We...
Persistent link: https://www.econbiz.de/10013216888
Using data from SEC filings, I show that the typical bank loan is renegotiated five times, or every nine months. The pricing, maturity, amount, and covenants are all significantly modified during each renegotiation, whose timing is governed by the financial health of the contracting parties and...
Persistent link: https://www.econbiz.de/10013046613