Some projects require collaboration between two firms. The expected return from such alliance can change over time due to evolving market conditions or arrival of new information. In such cases, when do firms agree to collaborate, and how do they split the profit? To address these questions, the...

We study the classical bargaining problem and its two canonical solutions, (Nash and Kalai-Smorodinsky), from a novel point of view: we ask for stability of the solution if both players are able distort the underlying bargaining process by reference to a third party (e.g. a court). By exploring...