Bargaining with Imperfect Enforcement* The game-theoretic bargaining literature insists on non-cooperative bargaining procedure but allows 'cooperative' implementation of agreements. The effect of this is to allow free-reign of bargaining power with no check upon it. In reality, courts cannot implement agreements costlessly, and parties often prefer to use 'non-cooperative' implementation. We p...

This paper studies the bargaining between one central player and N peripheral players. In each period the central player chooses which peripheral player to bargain with, hence the bargaining protocol is endogenously determined. The peripheral players are heterogeneous in terms of their bargaining power. We characterize the set of equilibrium outcomes with two different types of contracts, namel...

This paper examines the relationship between the concentration of political power in legislative bargaining and the predictability of the process governing the recognition of legislators. Our main result establishes that, for a broad class of legislative bargaining games, if the recognition procedure permits the legislators to rule out some minimum number of proposers one period in advance, the...

A stationary variant of the repeated prisoners’ dilemma in which the game frontier is a parallelogram is analyzed. By using the probabilistic cheap talk concept of [3], the discount factor becomes fungible, and for a critical value of the discount factor a unique Pareto-optimal and Pareto-dominant solution can be found. The relative bargaining power of the players can be quantified in terms of ...

Although the negotiations literature identifies a variety of approaches for improving one's power position, the relative benefits of these approaches remain largely unexplored. The empirical study presented in this article begins to address this issue by examining how the size of the bargaining zone affects the relative benefit of an advantage in one's BATNA (i.e., having a better alternative t...

We study the role of consumers’ psychological bargaining costs associated with the decision to bargain in a retail setting. First, we use a simple model to show how a retailer’s optimal pricing strategy (fixed pricing vs. bargaining) varies with consumers’ bargaining costs and the retailer’s marginal costs. We then prove how these fixed bargaining costs can be nonparametrically identified separ...

Legal historians have turned with renewed energy in recent years to the project of fleshing out the myriad rules by which the common law of the free labor employment contract structured social relations in nineteenth-century America. 1 Of course, labor relations have always been prominent in the literature. The German sociological tradition has long taught us to see in the legal protection of p...

a r t i c l e i n f o The present study considers a unionised (nonlinear) duopoly with two different labour market institutions, i.e. efficient bargaining (EB) and right to manage (RTM), to analyse product market stability under quantity competition with trade unions. We show that when the preference of unions towards wages is small, (i) the parametric stability region under RTM is higher than ...

Stakeholder negotiation is an increasingly important policymaking tool. However, relatively little is understood about the relationship between the structure of the negotiating process and the effectiveness with which participating stakeholders can pursue their individual interests. In this paper, we apply the Rausser-Simon multilateral bargaining model to a specific negotiation process, involv...