Efficient delays in a stochastic model of bargaining

B-Tier
Journal: Economic Theory
Year: 1997
Volume: 11
Issue: 1
Pages: 39-55

Authors (2)

Antonio Merlo (New York University (NYU)) Charles Wilson (not in RePEc)

Score contribution per author:

1.005 = (α=2.01 / 2 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We consider a k-player sequential bargaining model in which both the cake size and the identity of the proposer are determined by a stochastic process. For the case where the cake is a simplex (of random size) and the players share a common discount factor, we establish the existence of a unique stationary subgame perfect payoff which is efficient and characterize the conditions under which agreement is delayed. We also investigate how the equilibrium payoffs depend on the order in which the players move and on the correlation between the identity of the proposer and the cake size.

Technical Details

RePEc Handle
repec:spr:joecth:v:11:y:1997:i:1:p:39-55
Journal Field
Theory
Author Count
2
Added to Database
2026-01-26