We consider bilateral non-cooperative bargaining on the division of a surplus. Compared to the canonical bargaining … game in the tradition of Rubinstein, we introduce additional sources of friction into the bargaining process … month, quarter, or year. Bargaining rounds are of non-trivial length, so that counter-offers may be made without triggering …

rates. Our full characterization of equilibrium behavior permits studying how patience shapes the bargaining outcome. We …

agents' discount rates (i.e., patience levels) shape the bargaining outcome. We find that the seller's commitment problem … he is more impatient, independently of his private valuation; hence, higher bargaining costs may give negotiators with … private information greater bargaining power. …