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I study a situation where two players disagree on the division of a good. In the first of two stages, the players can divide the good peacefully between them by signing a contract. If either or both players reject the contract, they must engage in a costly contest over the good. One of the...
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We analyze a model of strategic network formation prior to a Manea (2011) bargaining game: ex-ante homogeneous players … sequential network bargaining. Assuming patient players, we provide a complete characterization of networks being pairwise (Nash … bargaining outcomes to be substantially narrowed down provided pairwise stability. Further, we find that for sufficiently high …
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