Multilateral Bargaining with Opt-Out Option

Amit Kumar Maurya

MPRA Paper from University Library of Munich, Germany

Abstract: We study a model of multilateral bargaining in which a buyer attempts to assemble objects owned by multiple sellers. Players can (non-cooperatively) opt out of the bargaining whenever they want. The presence of this option results in an equilibrium in which the buyer implements the project immediately and grabs the entire surplus. It also mitigates the inefficiency associated with nontransparent bargaining protocol. These results are in stark contrast to those obtained in Roy Chowdhury and Sengupta (2012).

Keywords: Multilateral bargaining; Opt Out; Outside options; Efficiency; Non-transparency (search for similar items in EconPapers)
JEL-codes: C72 C78 D23 (search for similar items in EconPapers)
Date: 2015-12-23
New Economics Papers: this item is included in nep-gth and nep-mic
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/68681/1/MPRA_paper_68681.pdf original version (application/pdf)

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:pra:mprapa:68681

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().