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We consider bargaining between two players who may invest ex ante in their agreement and disagreement payoffs. We characterize necessary conditions on equilibrium investment strategies in this environment, describe how investments and the probability of outcomes must vary across mechanisms, and...
Persistent link: https://www.econbiz.de/10013134917
applications to legislative bargaining and international trade negotiations …
Persistent link: https://www.econbiz.de/10013134921
We briefly review two basic models of settlement bargaining based on concepts from information economics and game theory. We then discuss how these models have been generalized to address issues that arise when there are more than two litigants with related cases. Linkages between cases can...
Persistent link: https://www.econbiz.de/10013136938
Two parties bargaining over a pie whose size is determined by the investment decisions of both. The bargaining rule is sensitive to the investment behavior. If a symmetric investments pro le is observed, bargaining proceeds according to the Nash Demand Game; otherwise bargaining proceeds...
Persistent link: https://www.econbiz.de/10013137846
Persistent link: https://www.econbiz.de/10013140179
Although formal theories have posited commitment and coordination models characterizing the importance of veto threats, the empirical analysis of threat behavior and its impact on policy outcomes, and lawmaking more generally, remains a critical question. This analysis tests Krehbiel's key...
Persistent link: https://www.econbiz.de/10013140292
We provide the first experimental results on a two-stage model of militarized conflict based on the ubiquitous ultimatum bargaining game that dominates much of the theoretical analysis of international relations. We illustrate how data from experimental trials deviate from the equilibrium...
Persistent link: https://www.econbiz.de/10013140566
the negotiations, because it happens through interaction. This approach requires distinguishing simple learning … Round of multilateral trade negotiations in the World Trade Organization. I then infer the results of arguing from the … textual deposits left by negotiations in order to assess the presence or absence of consensual understanding. Finally, I …
Persistent link: https://www.econbiz.de/10013141074
I study a bilateral bargaining game in which the size of the surplus follows a stochastic process and in which players might be optimistic about their bargaining power. Following Yildiz (2003), I model optimism by assuming that players have different beliefs about the recognition process. I show...
Persistent link: https://www.econbiz.de/10013142814
We model a situation in which two players bargain over two issues (pies), one of which can only be resolved at a future date. We find that if the players value the issues asymmetrically (one player considers the existing issue more important than the future one, while the other player has the...
Persistent link: https://www.econbiz.de/10013143644