We study a model in which heterogenous agents first form a trading network where link formation is costless. Then, a seller and a buyer are randomly selected among the agents to bargain through a chain of intermediaries. We determine both the trading path and the allocation of the surplus among...

We consider a model of licensing of a non-drastic innovation in which the patent holder (an outside innovator) negotiates either up-front fixed fees or per-unit royal- ties with two firms producing horizontally differentiated brands and competing à la Cournot. We investigate how licensing...

We develop a two-person negotiation model with complete information which makes endogenous both the deadline and the level of surplus destruction after the deadline. We show that the equilibrium outcome is always unique but might be inefficient. Moreover, as the bargaining period becomes short...

Independent firms may be interested in collaborative alliances in order to reduce their costs and risks, among others benefits. Particularly in operations, different firms can gain from economies of scale by pooling their production resources. Even though there may be a significant reduction of...

We develop a model of bargaining that provides a rationality for the difference in the method of negotiation, depending on the nature of the conflict. We distinguish negotiations previous to a potential conflict, and negotiations during a conflict. In these contexts, we study the role of a...

We study Myerson's incomplete information bargaining solution under the assumption of verifiable types. For the case of an informed principal, in which one individual has all the bargaining power, we provide exact characterizations both from the non cooperative and from the cooperative...

We consider bargaining situations where two players evaluate outcomes with reference-dependent utility functions, analyzing the effect of differing levels of loss aversion on bargaining outcomes. We find that as with risk aversion, increasing loss aversion for a player leads to worse outcomes...

In this note, we consider a negotiation model wherein a simultaneous voting game, which endogenizes the choice of the bargaining procedure, is introduced. That is, in stage 1 of the negotiation (i.e. before starting the bargaining), the N [greater then or equal] 3 players vote to decide which...