We consider Rubinstein’s two-person alternating-offer bargaining model with two-sided incomplete information. We investigate the effects of one party having relative concerns about the bargaining outcome and the delay in reaching an agreement. We find that facing an opponent with stronger...

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...

In the hold-up problem incomplete contracts cause the proceeds of relation-specific investments to be allocated by ex-post bargaining. The present paper investigates the efficiency of incomplete contracts if individuals have heterogeneous preferences implying heterogeneous bargaining behavior...

In the hold-up problem incomplete contracts cause the proceeds of relation specific investments to be allocated by ex-post bargaining. The present paper investigates the efficiency of incomplete contracts if individuals have heterogeneous preferences implying heterogeneous bargaining behavior...

In this paper, we propose and analyze a distributed negotiation strategy for a multi-agent multi-attribute negotiation in which the agents have no information about the utility functions of other agents. We analytically prove that, if the zone of agreement is non-empty and the agents concede up...

Theory provides competing predictions on the question of whether informed investors immediately trade on newly generated private information. We address this question using SEC-mandated disclosures to identify the dates when new private information about target or acquiring firm value is...