price, and then to the retail price. The type of vertical agreement firms contract upon as well as their relative bargaining …

If buyers can choose to initiate bargaining with a seller, how does this alter the price that the seller 'posts' in the … market? And does the option of bargaining raise or lower expected welfare?This paper develops a simple model to answer these … questions. With a single seller, the potential for bargaining raises the profit maximising posted price. In part, as has been …

/2; if neither offer falls into the interval, there is no settlement. Comparisons are made with other bargaining mechanisms …