Nash Bargaining with the Option to Wait*
نویسنده
چکیده
This paper derives the Generalized Nash Bargaining Solution for two-player games where each player has the option of postponing bargaining till a future period. This option endogenously determines the threat points of the initial game. The outcome is compared with the case where there is no such option, and with the usual Rubinstein bargaining game where one offer per period is made. JEL Classification: C78 *This research was supported by grants from the UCSC Division of Social Sciences and Academic Senate Committee on Research. I am thankful to Daniel Friedman, Kenneth Kletzer and Donald Wittman for helpful discussions and suggestions. I alone am responsible for errors and omissions. **Department of Economics, Social Sciences 1, University of California, Santa Cruz, CA 95064. Phone: (408) 459-4093, Fax: (408) 459-5900, email: [email protected] Nash Bargaining with the Option to Wait Nirvikar Singh Dept. of Economics, UCSC
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