Costless delay in negotiations

P. Jean-Jacques Herings and Harold Houba

No 2, Research Memorandum from Maastricht University, Graduate School of Business and Economics (GSBE)

Abstract: We study strategic negotiation models featuring costless delay, general recognition procedures, endogenous voting orders, and finite sets of alternatives. Two examples show: 1. non-existence of stationary subgame-perfect equilibrium (SSPE). 2. the recursive equations and optimality conditions are necessary for SSPE but insufficient because these equations can be singular. Strategy profiles excluding perpetual disagreement guarantee non-singularity. The necessary and sufficient conditions for existence of stationary best responses additionally require either an equalizing condition or a minimality condition. Quasi SSPE only satisfy the recursive equations and optimality conditions. These always exist and are SSPE if either all equalizing conditions or all minimality conditions hold.

Date: 2015-01-01
New Economics Papers: this item is included in nep-gth and nep-mic
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Related works:
Journal Article: Costless delay in negotiations (2022)
Working Paper: Costless Delay in Negotiations (2015)
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Persistent link: https://EconPapers.repec.org/RePEc:unm:umagsb:2015002

DOI: 10.26481/umagsb.2015002

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