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behavioural bias. …
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characterizes what the players can achieve if they can freely communicate with each other. I show that the intermediary’s bias is … surplus will decrease if the degree of bias exceeds a certain threshold …
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We identify the inefficiencies that arise when negotiation between two parties takes place in the presence of transaction costs. First, for some values of these costs it is efficient to reach an agreement but the unique equilibrium outcome is one in which agreement is never reached. Secondly,...
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