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necessities of signalling are shown to generate very strong investment incentives. These incentives are based on the desire not to …
Persistent link: https://www.econbiz.de/10002812571
bargaining: union contract negotiations. …
Persistent link: https://www.econbiz.de/10014024495
In this paper, we examine the optimal mechanism design of selling an indivisible object to one regular buyer and one publicly known buyer, where inter-buyer resale cannot be prohibited. The resale market is modeled as a stochastic ultimatum bargaining game between the two buyers. We fully...
Persistent link: https://www.econbiz.de/10012989366
Two deviations of alternating-offer bargaining behavior from economic theory are observed together, yet have been studied separately. Players who could secure themselves a large surplus share if bargainers were purely self-interested incompletely exploit their advantage. Delay in agreement...
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We find that probabilistic deceit detection and cheap-talk threats enhance the fairness and honesty of a bargainer who …
Persistent link: https://www.econbiz.de/10013003880
Negotiations between buyers and suppliers that require sharing cost details to identify profitable relationship … leads negotiators to trade-off potential utility losses due to fairness considerations and potential monetary gains. Fewer … (more) negotiators chose to share fine (coarse) information and thus minimize fairness based utility losses (maximize …
Persistent link: https://www.econbiz.de/10014048268
We study mechanism design under endogenously incomplete commitment as it arises in contracting with escape clauses. An escape clause permits the agent to end a contractual relationship under specified circumstances, after which the principal can offer an ex-post contract. Escape clauses are...
Persistent link: https://www.econbiz.de/10012520279
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