Multilateral bargaining with an endogenously determined procedure
Hong Gao and
Haibo Xu
Economics Letters, 2021, vol. 209, issue C
Abstract:
We study a multilateral bargaining game in which a manager negotiates sequentially with several workers to share the units of surplus. The main feature of the game is that the manager determines the order of her bargaining opponents endogenously. The game exhibits double-sided hold-up effects: the manager can hold up the workers by switching between the workers, whereas the workers can hold up the manager by coordinating their moves. The interaction of these hold-up effects results in the multiplicity of equilibrium. Moreover, inefficient delays of agreements can arise in some equilibria, and the delays may not vanish even if the time interval between two offers becomes arbitrarily small.
Keywords: Multilateral bargaining; Endogenous procedure; Multiple equilibria; Delay in equilibrium (search for similar items in EconPapers)
JEL-codes: C72 C78 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)
Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0165176521004250
Full text for ScienceDirect subscribers only
Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:209:y:2021:i:c:s0165176521004250
DOI: 10.1016/j.econlet.2021.110148
Access Statistics for this article
Economics Letters is currently edited by Economics Letters Editorial Office
More articles in Economics Letters from Elsevier
Bibliographic data for series maintained by Catherine Liu ().