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...

In this paper we study a two agents asymmetric stag hunt game. The model has an infinity of strict, Pareto rankable Nash equilibria. The equilibrium selection problem is solved by appealing to the stochastic stability concept put forward by Young (1993). We prove two main results. When the...