Questions tagged [bargaining]

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Gale's version of the Rubinstein-Wolinsky (1985) model

Likely to be a very stupid doubt. I am reading Douglas Gale's book "The Strategic Foundations of General Equilibrium", which presents a brief version of "Equilibrium in a Market with ...
Tanay's user avatar
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Asymmetric Nash Bargaining

The Nash bargaining solution selects the unique solution to the maximization problem $\max_{s_1, s_2 } (s_1 - d_1) (s_2 - d_2)$ such that the solution satisfy the following axioms : Invariance ...
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Nash Bargain VS. Rubinstein Game with Outside Option

I am reading a paper, Kessier & Lulfesmann 2006, and find that its main result totally depends on that the model setting is based on a Rubinstein game with outside option rather than a Nash ...
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Fehr-Schmidt, Ultimatum game, Subgame-Perfect Nash Equilibrium

I'm studying the different variations of the ultimatum games. I've spent some time on this following game: Assume now that each player does not only care about the amount of money she receives, but ...
Justin Malik's user avatar
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Dependence of sale-price on bargaining ability

Consider a single seller offering a single item to a single buyer. If the seller's value is $s$ and the buyer's value is $b$ and $s<b$, then every price between $s$ and $b$ is individually rational....
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How can I show what a discount factor is a function of in a bargaining model?

I was reading Espinosa and Rhee (1989) and I was wondering how can the impact of exogenous changes on the discount factor can be shown mathematically. For example, if $A$ represents some exogenous ...
wannabe-econ-nerd's user avatar
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Right-to-manage wage bargaining (simple algebraic steps)

I am following (and trying to understand) a paper where the wage of unskilled workers is determined as the outcome of wage bargaining between a single union and a single firm in a right-to-manage ...
Alessandro's user avatar
1 vote
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Take It Or Leave It Strategy: Social Optimum

Here is what I understood Using Backward Induction, I inferred that buyer offers a price, say, $P$ and the seller will sell only if $P \geq c(I)$. Setting the lowest possible Price that will ensure ...
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Two-sided market and bargaining game

I am solving a bargaining problem in which I have two players $player_1 $ and $ player_2 $. Both of them have a service (represented as $ z_1 ,z_2 $) that they can provide . Moreover they will ...
user9919909's user avatar
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Does any economic theory distinguishes "common bargaining power advantage" from "abusive bargaining power advantage"?

Let me give an example of what I mean by 'abusive bargaining power advantage': People store and sell goods, amid fluctuations of demand and price, in order to make profit. And that's ok. But suppose ...
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