Optimism, delay and (in)efficiency in a stochastic model of bargaining

B-Tier
Journal: Games and Economic Behavior
Year: 2013
Volume: 77
Issue: 1
Pages: 352-366

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

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 that the unique subgame perfect equilibrium of this game might involve inefficient delays. I also show that these inefficiencies disappear when players can make offers arbitrarily frequently.

Technical Details

RePEc Handle
repec:eee:gamebe:v:77:y:2013:i:1:p:352-366
Journal Field
Theory
Author Count
1
Added to Database
2026-01-26