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This paper studies infinite-horizon bargaining between a seller and multiple buyers when externalities are present. We … externalities. Since each buyer receives a positive payoff when the seller makes an agreement with some other buyer, positive … externalities induce a war of attrition between buyers. …
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. Furthermore, since local interactions imply particular forms of externalities, their presence typically suggests government action …
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This paper presents a general model of a competitive market with consumption externalities, and establishes the …
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