Bargaining with Deadlines and Private Information

B-Tier
Journal: American Economic Journal: Microeconomics
Year: 2013
Volume: 5
Issue: 4
Pages: 219-43

Score contribution per author:

1.005 = (α=2.01 / 2 authors) × 1.0x B-tier

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

Abstract

We study dynamic bargaining with private information and a deadline. As commitment power disappears, there is a clear "deadline effect." That is, trade takes place smoothly before the deadline and with an atom right at the deadline. Prices, timing of trade, and the deadline effect respond to the consequences of not reaching an agreement. Bleaker disagreement options lead to more trade and proportionally more of the agreements taking place on the verge of the deadline. Time to deadline can affect the overall efficiency of the equilibrium nonmonotonically. For intermediate deadlines, efficiency is improved if agents face bleaker prospects after deadline.

Technical Details

RePEc Handle
repec:aea:aejmic:v:5:y:2013:i:4:p:219-43
Journal Field
General
Author Count
2
Added to Database
2026-01-25