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This paper considers the situation in which two perfect complements belong to different owners. We calculate the Bayesian-Nash equilibrium in the mechanism of k + 1 - price bargaining with private value, and did experiment to test the theory.
Persistent link: https://www.econbiz.de/10008551339
Persistent link: https://www.econbiz.de/10005297043
It is standard in experimental economics to use decontextualized designs where payoff structures are presented using neutral language. Here we show that cooperation in such a neutrally framed Prisoner’s Dilemma is equivalent to a PD framed as contributing to a cooperative endeavour....
Persistent link: https://www.econbiz.de/10011041589