Bilateral Bargaining with Externalities

A-Tier
Journal: Journal of Industrial Economics
Year: 2014
Volume: 62
Issue: 4
Pages: 756-788

Authors (2)

Catherine C. Fontenay (not in RePEc) Joshua S. Gans (University of Toronto)

Score contribution per author:

2.011 = (α=2.01 / 2 authors) × 2.0x A-tier

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

Abstract

type="main"> <p>This paper provides an analysis of a non-cooperative pairwise bargaining game between agents in a network. We establish that there exists an equilibrium that generates a coalitional bargaining division of the reduced surplus that arises as a result of externalities between agents. That is, we provide a non-cooperative justification for a cooperative division of a non-cooperative surplus. The resulting division is related to the Myerson-Shapley value with properties that are particularly useful and tractable in applications. We demonstrate this by examining buyer-seller networks and vertical foreclosure.

Technical Details

RePEc Handle
repec:bla:jindec:v:62:y:2014:i:4:p:756-788
Journal Field
Industrial Organization
Author Count
2
Added to Database
2026-01-25