Folk theorems in a bargaining game with endogenous protocol
Shiran Rachmilevitch ()
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Shiran Rachmilevitch: University of Haifa
Theory and Decision, 2019, vol. 86, issue 3, No 5, 389-399
Abstract:
Abstract Two players bargain to select a utility allocation in some set $$X\subset {\mathbb {R}}_+^2$$ X ⊂ R + 2 . Bargaining takes place in infinite discrete time, where each period t is divided into two sub-periods. In the first sub-period, the players play a simultaneous-move game to determine that period’s proposer, and bargaining takes place in the second sub-period. Rejection triggers a one-period delay and move to $$t+1$$ t + 1 . For every $$x\in X\cap {\mathbb {R}}^2_{++}$$ x ∈ X ∩ R + + 2 , there exists a cutoff $$\delta (x)
Keywords: Bargaining; Endogenous protocol; Folk theorems (search for similar items in EconPapers)
Date: 2019
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Persistent link: https://EconPapers.repec.org/RePEc:kap:theord:v:86:y:2019:i:3:d:10.1007_s11238-019-09688-6
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DOI: 10.1007/s11238-019-09688-6
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