Fooling All of the People Some of the Time: A Theory of Endogenous Sequencing in Confidential Negotiations

S-Tier
Journal: Review of Economic Studies
Year: 2004
Volume: 71
Issue: 3
Pages: 855-881

Authors (2)

Thomas H. Noe (Oxford University) Jun Wang (not in RePEc)

Score contribution per author:

4.022 = (α=2.01 / 2 authors) × 4.0x S-tier

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

Abstract

We analyse a bargaining game in which one party, called the buyer, has the option of choosing the sequence of negotiations with other participants, called sellers. When the sequencing of negotiations is confidential and the sellers' goods are highly complementary, efficient, non-dissipative equilibria exist in which the buyer randomizes over negotiation sequences. In these equilibria, the buyer can obtain higher pay-offs than in pure strategy equilibria or in public negotiations. The degree of sequencing uncertainty that maximizes buyer pay-offs is inversely related to the aggregate bargaining power of the sellers. Copyright 2004, Wiley-Blackwell.

Technical Details

RePEc Handle
repec:oup:restud:v:71:y:2004:i:3:p:855-881
Journal Field
General
Author Count
2
Added to Database
2026-01-26