Bagnoli, Lidia; Negroni, Giorgio - 2010 - This version: June 2010
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 … behavior in the whole population both at the investment stage and at the distribution stage. A norm of investment and a norm of …