Rubinstein bargaining with two-sided outside options

B-Tier
Journal: Economic Theory
Year: 1998
Volume: 11
Issue: 3
Pages: 667-672

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

In this note we show that if in the standard Rubinstein model both players are allowed to leave the negotiation after a rejection, in which case they obtain a payoff of zero, then there exist a continuum of subgame-perfect equilibrium outcomes, including some which involve significant delay. We also fully characterize the case in which, upon quitting, the players can take an outside option of positive value.

Technical Details

RePEc Handle
repec:spr:joecth:v:11:y:1998:i:3:p:667-672
Journal Field
Theory
Author Count
2
Added to Database
2026-01-29