Public vs. Private Offers in the Market for Lemons
نویسندگان
چکیده
We study the role of observability in bargaining with correlated values. Short-run buyers sequentially submit offers to one seller. When previous offers are observable, bargaining is likely to end up in an impasse. In contrast, when offers are hidden, agreement is always reached, although with delay.
منابع مشابه
PUBLIC VS. PRIVATE OFFERS IN THE MARKET OF LEMONS BY JOHANNES HÖRNER and NICOLAS VIEILLE COWLES FOUNDATION PAPER NO. 1263 COWLES FOUNDATION FOR RESEARCH IN ECONOMICS
We study the role of observability in bargaining with correlated values. Short-run buyers sequentially submit offers to one seller. When previous offers are observable, bargaining is likely to end up in an impasse. In contrast, when offers are hidden, agreement is always reached, although with delay.
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