Signaling bargaining power: Strategic delay versus restricted offers

B-Tier
Journal: Economic Theory
Year: 2000
Volume: 16
Issue: 1
Pages: 227-237

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 the first-round separating equilibrium of a buyer-seller bargaining game, extended to allow for asymmetric information, strategically delayed offers and offers restricted to a portion of the good. When bargaining is over a consumption good, in equilibrium the "strong" buyer uses a restricted offer if his optimal consumption path is conservative relative to the "weak" buyer. A pure restricted offer may even be a costless, efficient signal. When the good is durable, a pure strategic delay is involved in signaling a strong bargaining position if the discount factor is high.

Technical Details

RePEc Handle
repec:spr:joecth:v:16:y:2000:i:1:p:227-237
Journal Field
Theory
Author Count
1
Added to Database
2026-01-24