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choices of the other generations. We analyse this situation as one of bargaining à la Rubinstein, Safra and Thomson [15 …
Persistent link: https://www.econbiz.de/10008672007
a sequential intergenerational bargaining. Since technology adoption benefits future generations who do not participate … in the bargaining, there is an inherent bias toward preserving the current technology. The main result is that economic … merging of countries into a single bargaining) promotes stagnation. …
Persistent link: https://www.econbiz.de/10008672184
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government by majority rule voting could not withstand a bargaining equilibrium comparable to the general equilibrium in a … competitive economy. Democratic government is designed to foster bargaining where it should be fostered and to impede bargaining …
Persistent link: https://www.econbiz.de/10008680681
This paper uses the political economy model of Battaglini and Coate (2008) to analyze the impact of a balanced budget rule that requires that legislators do not run deficits. It considers both a strict rule which cannot be circumvented and a rule that can be overridden by a super-majority of...
Persistent link: https://www.econbiz.de/10008684865
We analyze a dynamic market for lemons in which the quality of the good is endogenously determined by the seller. Potential buyers sequentially submit offers to one seller. The seller can make an investment that determines the quality of the item at the beginning of the game, which is...
Persistent link: https://www.econbiz.de/10008871193
This paper provides experimental evidence of the economic impact from shifting bargaining power in relational contracts …. I implement an experimental design that adjusts the bargaining power of sellers (agents) and the enforceability of the … performance contracts when enforcement is partially incomplete and sellers have more bargaining power than buyers. The total …
Persistent link: https://www.econbiz.de/10009021497