Optimism, delay and (in)efficiency in a stochastic model of bargaining
نویسنده
چکیده
I study a bilateral bargaining game in which the size of the surplus follows a stochastic process and in which players might be optimistic about their bargaining power. Following Yildiz (2003), I model optimism by assuming that players have different beliefs about the recognition process. I show that the unique subgame perfect equilibrium of this game might involve inefficient delays. I also show that these inefficiencies disappear when players can make offers arbitrarily frequently. JEL Classification Codes: C73, C78.
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ورودعنوان ژورنال:
- Games and Economic Behavior
دوره 77 شماره
صفحات -
تاریخ انتشار 2013