Unobserved-Offers Bargaining

S-Tier
Journal: American Economic Review
Year: 2023
Volume: 113
Issue: 1
Pages: 136-73

Score contribution per author:

8.043 = (α=2.01 / 1 authors) × 4.0x S-tier

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

Abstract

I study ultimatum bargaining with imperfectly observed offers. Imperfectly observed offers must be rejected with positive probability, even when the players' preferences are common knowledge. Noisier observations imply a greater risk of rejection. In repeated ultimatum bargaining, the responding party can obtain a positive payoff if his signal of the opponent's offer is also observed by the opponent herself, but not if his signal is private. In alternating-offers bargaining, a player is better off when her own offers are observed more precisely and her opponent's offers are observed less precisely. Possible applications include international relations, regulation, principal-agency, and product quality provision.

Technical Details

RePEc Handle
repec:aea:aecrev:v:113:y:2023:i:1:p:136-73
Journal Field
General
Author Count
1
Added to Database
2026-01-29