Perfect Equilibria in Negotiation Model

Lutz-Alexander Busch and Quan Wen ()

Econometrica, 1995, vol. 63, issue 3, 545-65

Abstract: An alternating-offers bargaining model in which a normal-form game determines players' payoffs in disagreement periods can have multiple perfect equilibria, provided that players are sufficiently patient. Even though there is perfect information, delay can arise and the length of delay depends only on the payoff structure of the disagreement game and not on the discount factor. On the other hand, not all feasible and individually rational payoffs of the disagreement game can be supported as average payoffs in equilibrium and some negotiation games have a unique perfect equilibrium with immediate agreement. Copyright 1995 by The Econometric Society.

Date: 1995
References: Add references at CitEc
Citations: View citations in EconPapers (76)

Downloads: (external link)
http://links.jstor.org/sici?sici=0012-9682%2819950 ... O%3B2-G&origin=repec full text (application/pdf)
Access to full text is restricted to JSTOR subscribers. See http://www.jstor.org for details.

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:ecm:emetrp:v:63:y:1995:i:3:p:545-65

Ordering information: This journal article can be ordered from
https://www.economet ... ordering-back-issues

Access Statistics for this article

Econometrica is currently edited by Guido Imbens

More articles in Econometrica from Econometric Society Contact information at EDIRC.
Bibliographic data for series maintained by Wiley Content Delivery ().