EconPapers    
Economics at your fingertips  
 

Coasean Bargaining Games with Stochastic Stock Externalities

Magnus Hennlock ()
Additional contact information
Magnus Hennlock: Department of Economics, School of Business, Economics and Law, Göteborg University, Postal: Box 640, SE 405 30 GÖTEBORG

No 229, Working Papers in Economics from University of Gothenburg, Department of Economics

Abstract: The recent approach ‘subgame consistency’ in cooperative stochastic differential games by Yeung and Petrosjan (2006) and Yeung and Petrosjan (2004) is applied to the classical Coase theorem in the presence of stochastic stock externalities. The dynamic Coasean bargaining solution is identified involving a negotiated plan of externality trade over time as well as subgame consistent Coasean liability payments flow under different assignments of property rights. The agent with the right to determine the externality has the advantage to choose his own private equilibrium as the initial condition in the dynamic system of the Coasean bargaining solution. The dynamic Coasean bargaining solution is formulated followed by an illustration showing an analytical tractable solution.

Keywords: dynamic cooperative games; cooperative stochastic differential games; dynamic stability; Coase theorem (search for similar items in EconPapers)
JEL-codes: C71 C73 Q53 Q56 (search for similar items in EconPapers)
Pages: 24 pages
Date: 2006-09-26
New Economics Papers: this item is included in nep-gth and nep-res
References: Add references at CitEc
Citations:

Downloads: (external link)
http://hdl.handle.net/2077/2688 (text/html)

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:hhs:gunwpe:0229

Ordering information: This working paper can be ordered from

Access Statistics for this paper

More papers in Working Papers in Economics from University of Gothenburg, Department of Economics Department of Economics, School of Business, Economics and Law, University of Gothenburg, Box 640, SE 405 30 GÖTEBORG, Sweden. Contact information at EDIRC.
Bibliographic data for series maintained by Jessica Oscarsson ().

 
Page updated 2025-02-09
Handle: RePEc:hhs:gunwpe:0229