This paper proposes a model of multilateral contracting where players are engaged in two parallel interactions: they dynamically form coalitions and play a repeated normal form game with temporary and permanent decisions. We show that when outside options are independent of the actions of other...

This paper proposes a new solution concept to three-player coalitional bargaining problems. The coalitional bargaining problem is modeled as a dynamic non-cooperative game in which players make conditional or unconditional offers, coalitions continue to negotiate as long as there are gains from...

This paper proposes a model for multilateral contracting, where contracts are written and renegotiated over time, and where contracts may impose externalities on other agents. The paper derives several properties of the Markov perfect equilibria of the infinite state-space contracting model....