One-dimensional bargaining with Markov recognition probabilities

P. Jean-Jacques Herings and Arkadi Predtetchinski

Journal of Economic Theory, 2010, vol. 145, issue 1, 189-215

Abstract: We study a process of bargaining over alternatives represented by points in the unit interval. The paper focuses on the asymptotic behavior of the subgame perfect equilibrium in stationary strategies as the continuation probability approaches one. We give a complete characterization of the limit of the equilibrium proposals as the generalized fixed point of the decumulative distribution of the players' ideal points as induced by the recognition probabilities. In contrast to the existing literature, we find no general relationship between the limit equilibrium proposals and either the Nash bargaining solution or the median voter outcome.

Keywords: One-dimensional; bargaining; Markov; process; Median; voter; theorem; Nash; bargaining; solution (search for similar items in EconPapers)
Date: 2010
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Citations: View citations in EconPapers (26)

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Working Paper: One-dimensional bargaining with Markov recognition probabilities (2007)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:jetheo:v:145:y:2010:i:1:p:189-215

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