Nash meets Rubinstein in final-offer arbitration

C-Tier
Journal: Economics Letters
Year: 2011
Volume: 110
Issue: 3
Pages: 226-230

Score contribution per author:

1.005 = (α=2.01 / 1 authors) × 0.5x C-tier

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

Abstract

I consider a final-offer arbitration model in which the offers are submitted sequentially, the parties are allowed to accept offers, and the arbitrator maximizes Nash's social welfare function. I show that backwards induction in this three-period model leads to the subgame-perfect equilibrium outcome of Rubinstein's infinite-horizon alternating-offer bargaining game.

Technical Details

RePEc Handle
repec:eee:ecolet:v:110:y:2011:i:3:p:226-230
Journal Field
General
Author Count
1
Added to Database
2026-01-29