outside option, which is modeled as a sequential search process during which he can also choose to return to bargaining at any … time. Two cases considered: In Regime I, both agents have symmetric information about the search parameters. We find that …, delay is possible. The solution characterizes the parameters for renegotiation and those for search with no return to the …

option to buy via search or return to bargaining. Here many buyers choose a bargaining agreement when a search outcome is … predicted. For those who opt out, search outcomes are overall efficient and behavior is relatively close to the optimal search …