Reputational Bargaining and Deadlines

S-Tier
Journal: Econometrica
Year: 2016
Volume: 84
Pages: 1131-1179

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

I highlight how reputational concerns provide a natural explanation for “deadline effects,” the high frequency of deals prior to a deadline in bargaining. Rational agents imitate the demands of obstinate behavioral types and engage in brinkmanship in the face of uncertainty about the deadline's arrival. I also identify how surplus is divided when the prior probability of behavioral types is vanishingly small. If behavioral types are committed to fixed demands, outcomes converge to the Nash bargaining solution regardless of agents' respective impatience. If behavioral types can adopt more complex demand strategies, outcomes converge to the solution of an alternating offers game without behavioral types for the deadline environment.

Technical Details

RePEc Handle
repec:wly:emetrp:v:84:y:2016:i::p:1131-1179
Journal Field
General
Author Count
1
Added to Database
2026-01-25