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bargaining model of price formation with asymmetric information. Under natural assumptions on type distributions, and for any … discount factor, we show that the unobservability of past negotiations leads to lower prices and faster trading …
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negligible? This paper analyzes the above question and provides a foundation for renegotiation-proof contracts in a related …
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I study how the arrival of new private information affects bargaining outcomes. A seller makes offers to a buyer. The … delivering the good. Prices fall gradually at the early stages of negotiations, and trade is inefficiently delayed. The first …-best is implementable via a mechanism, whereas all equilibrium outcomes of the bargaining game are inefficient. …
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