Two parties bargaining over a pie, the size of which is determined by their previous investment decisions. The bargaining rule is sensitive to investment behavior. Two games are considered. In both, bargaining proceeds according to the Nash Demand Game when a symmetric investments profile is...

Two parties bargaining over a pie, the size of which is determined by their previous investment decisions. Investment costs are heterogeneous. The bargaining rule is sensitive to investment behavior. Two games are studied which differ for the considered sociopolitical structure: communal...

In this paper we study expectations coordination on a deterministic 2-cycle by an "eductive" approach in which agents are concerned with forecasting the forecasts of others. This approach is grounded in some Common Knowledge assumption. We show that eductively stable 2-cycles exit. We also show...