Delays and partial agreements in multi-issue bargaining

Avidit Acharya () and Juan Ortner

Journal of Economic Theory, 2013, vol. 148, issue 5, 2150-2163

Abstract: We model a situation in which two players bargain over two pies, one of which can only be consumed starting at a future date. Suppose the players value the pies asymmetrically: one player values the existing pie more than the future one, while the other player has the opposite valuation. We show that players may consume only a fraction of the existing pie in the first period, and then consume the remainder of it, along with the second pie, at the date at which the second pie becomes available. Thus, our model features a special form of bargaining delay, in which agreements take place in multiple stages. Such partial agreements arise when players are patient enough, when they expect the second pie to become available soon, and when the asymmetry in their valuations is large enough.

Keywords: Bargaining; Multiple issues; Partial agreements; Delay; Inefficiency (search for similar items in EconPapers)
JEL-codes: C73 C78 (search for similar items in EconPapers)
Date: 2013
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0022053113001269
Full text for ScienceDirect subscribers only

Related works:
Working Paper: Delays and Partial Agreements in Multi-Issue Bargaining (2010)
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:jetheo:v:148:y:2013:i:5:p:2150-2163

DOI: 10.1016/j.jet.2013.07.008

Access Statistics for this article

Journal of Economic Theory is currently edited by A. Lizzeri and K. Shell

More articles in Journal of Economic Theory from Elsevier
Bibliographic data for series maintained by Catherine Liu ().