A continuous-time model of bilateral bargaining

B-Tier
Journal: Games and Economic Behavior
Year: 2019
Volume: 113
Issue: C
Pages: 720-733

Score contribution per author:

2.011 = (α=2.01 / 1 authors) × 1.0x B-tier

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

Abstract

This paper constructs a continuous-time model of bilateral bargaining to study how fluctuations in bargaining power affect the outcomes of negotiations. The paper deals with the technical complexities that arise when modeling games in continuous time by building strategy restrictions into the equilibrium definition. These restrictions select a unique equilibrium, which is characterized by a system of ordinary differential equations. This unique equilibrium corresponds to the limiting subgame perfect equilibrium of discrete-time bargaining games with frequent offers.

Technical Details

RePEc Handle
repec:eee:gamebe:v:113:y:2019:i:c:p:720-733
Journal Field
Theory
Author Count
1
Added to Database
2026-01-26