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This paper provides a cradle-to-grave model for political union between two unequally endowed states. We introduce negotiated, contested, and time-consistent contested constitutions to address various classes of merger problems. Merger agreement is shown to be path dependent and, in some cases,...
Persistent link: https://www.econbiz.de/10009365360
I characterize the proportional N-person bargaining solutions by individual rationality, translation invariance …, such that replacing d with d' as the disagreement point would not change the final bargaining outcome, no matter which …
Persistent link: https://www.econbiz.de/10009324196
Several bargaining solutions could fail to capture advantage from having sets closer to the same utopia point. If the … same point. We called this phenomena the stagnation effect. In order to reflect the idea that if the bargaining set is …
Persistent link: https://www.econbiz.de/10010772986
effect, which takes place when a bargaining solution remains unchanged facing all possible expansions of the bargaining set … not affecting the utopia point. Our main result relies on a very weak axiom, stagnation proofness. Whenever a bargaining …
Persistent link: https://www.econbiz.de/10010773001
A unique bargaining solution satisfies restricted monotonicity, independence of irrelevant alternatives, independence … of equivalent utility representations, and symmetry—the disagreement solution. It is also the unique bargaining solution …
Persistent link: https://www.econbiz.de/10011041693
Although many real bargaining situations involve more than one person on each side of the bargaining table, much of the … theoretical and experimental research concentrates on two single players. We study a simple extension: bilateral bargaining of …
Persistent link: https://www.econbiz.de/10011116853
positions of the bargaining parties are clearly asymmetric and formation of the full group is not guaranteed. …
Persistent link: https://www.econbiz.de/10010608092
Most of the economic literature on bargaining has focused on situations where the set of possible outcomes is taken as … before they bargain over which of them is selected. Our objective is to understand how different bargaining institutions … affect the incentives to disclose possible solutions to the bargaining problem, where inefficiency may arise when both …
Persistent link: https://www.econbiz.de/10008854532
This paper analyzes dynamically inconsistent time preferences in Rubinstein's (1982) seminal model of bargaining. When … exogenous breakdown risk, as well as in settings of intergenerational bargaining with imperfect altruism. The paper's main …
Persistent link: https://www.econbiz.de/10010955336
We consider Coasian bargaining problems where the buyer has an outside option arriving at a stochastic time. We study … available, and the standard Coasian bargaining literature, where the buyer has no outside option. …
Persistent link: https://www.econbiz.de/10010822897