Transaction costs are omnipresent in markets yet are often omitted in economic models. We show that their presence can … fundamentally alter incentives and welfare in markets in which the price equates supply and demand. We categorize transaction costs … properties of markets without transaction costs, namely strategyproofness, efficiency, and robustness to misspecified beliefs and …

We develop a DSGE model with firm-specific labor where firm-level wage bargaining and price setting are subject to …

We present a model of bargaining in which a committee searches over the policy space, successively amending the default … by voting over proposals. Bargaining ends when proposers are unable or unwilling to amend the existing default, which is …

This paper studies a two-sided incomplete information bargaining model between a seller and a buyer. The buyer has an … outside option, which is modeled as a sequential search process during which he can also choose to return to bargaining at any …, in contrast to bargaining with complete information, the option to return to bargaining is not redundant in equilibrium …

We model the bargaining process of parents over custody at the time of divorce. First we assume an institutional …

A series of experiments compares bargaining behavior under three different settings: no arbitration, conventional and … interfer more with bargaining behavior than conventional arbitration where the bargaining behavior was similar to the no …-arbitration treatment. Under final offer arbitration, negotiators adjust their bargaining strategy to the arbitrator's expected award. …

The bargaining model with stochastic order of proposing players is properly embedded in continuous time and it is … the Nash bargaining solution of a modified bargaining problem and the Maximum Theorem implies convergence to the Nash … bargaining solution when time between proposals vanishes. The model unifies alternating offers, one-sided offers and random …

The Nash bargaining solution of a modified bargaining problem in the contract space yields the pair of stationary … vanishes, convergence to the Nash bargaining solution is immediate by the Maximum Theorem. Numerical implementation in standard …

We study a bargaining model with a disagreement game between offers and counteroffers. In order to characterize the set …

coalition formation in such a setting. Our analysis proceeds by defining on a partition function an extensive form bargaining …