Bargaining with learning

B-Tier
Journal: Journal of Mathematical Economics
Year: 2019
Volume: 82
Issue: C
Pages: 90-97

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

We analyze two simple models of bargaining games with two-sided incomplete information where players have imperfect information about their own valuation. We suggest a model for learning by players about their own valuations during the bargaining process. Specifically, when the minimum price the buyer has to pay (or the maximum price a seller can obtain) is clear to her, it triggers a costless learning of whether her valuation is above that price. Under such learning, we show that there is an ex post efficient equilibrium in both models. Thus, a very simple model of learning about one’s own type can circumvent the Myerson–Satterthwaite theorem.

Technical Details

RePEc Handle
repec:eee:mateco:v:82:y:2019:i:c:p:90-97
Journal Field
Theory
Author Count
1
Added to Database
2026-02-02