Now or Later?--Endogenous Timing of Threats

Siegfried K. Berninghaus

Theory and Decision, 2003, vol. 55, issue 3, 235-256

Abstract: Whereas early threats are chosen before bargaining, late threats are determined after bargaining ended in conflict. Instead of exogenously imposing the timing of threats, these are derived endogenously as in indirect evolution or endogenous timing. Based on a duopoly market, we first derive the equilibrium for all possible constellations regarding the timing of threats. Our analysis surprisingly justifies the early timing of threats as suggested by Nash (1953).

Date: 2003
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