Uncertainty and Delay in Bargaining

S-Tier
Journal: Review of Economic Studies
Year: 1990
Volume: 57
Issue: 4
Pages: 575-595

Score contribution per author:

8.073 = (α=2.02 / 1 authors) × 4.0x S-tier

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

Abstract

This paper investigates the relationship between uncertainty and delay of agreement in the one-sided offer bargaining model with two-sided uncertainty where the seller makes offers. We construct a weak stationary equilibrium in which different types of the seller charge different prices in every period. We completely characterize the separating equilibrium by three regularity conditions, and show that the time interval between offers converges to zero, the seller's initial price offer in a separating equilibrium converges with probability 1 to the lowest valuation of the buyer if and only if the gain from trading is common knowledge.

Technical Details

RePEc Handle
repec:oup:restud:v:57:y:1990:i:4:p:575-595
Journal Field
General
Author Count
1
Added to Database
2026-01-25