Torstensson, Pär - Nationalekonomiska Institutionen, Ekonomihögskolan - 2005
When Herrero (1985) extends Rubinstein's (1982) alternating-offers bargaining model to the case of three or more players any agreement can be supported as a subgame perfect equilibrium (SPE) outcome, given a sufficiently large discount factor. We show that this is not the case when players...