Patience in repeated bargaining: Revisiting Muthoo (1999)

Jan Zapal

Journal of Mathematical Economics, 2018, vol. 75, issue C, 150-153

Abstract: The paper shows that Corollary 10.3 in Muthoo’s book Bargaining Theory with Applications (Cambridge University Press, 1999) is incorrect and proves that patience increases a player’s equilibrium share in repeated bargaining situations. It clarifies why a tempting strategy of proof – replacing terms of an expression by approximations with identical limits, then doing comparative statics or taking limits – is flawed and will yield wrong conclusions in other contexts as well.

Keywords: Repeated bargaining; Patience; Discounting; Comparative statics; Approximations (search for similar items in EconPapers)
Date: 2018
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:mateco:v:75:y:2018:i:c:p:150-153

DOI: 10.1016/j.jmateco.2018.01.007

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