A buyer and seller alternate making offers until an offer is accepted or someone terminates negotiations. The seller's valuation is common knowledge, but the buyer's valuation is known only by the buyer. Impatience to reach an agreement comes from two sources: the traders discount future payoffs and there are transaction costs of bargaining. Equilibrium behavior involves either immediate trade,...

This article reviews literature on competitiveness of agricultural product and input markets. Although researchers in the United States and Europe emphasize different stages of the agricultural and food marketing system, their focus is similar: extent of buyer power, although both have largely ignored the sector supplying inputs to agriculture. The key conclusion is that there is little robust ...

This paper studies the exertion of market power in large buyer groups confronting an incumbent monopolist and a potential market entrant in a repeated trade situation. In the experiment, buyer power can either occur as demand withholding when only the incumbent is present in the market, or it can take the form of buying at higher prices from the entrant in order to foster future re-entry. Compa...

The modeling of noncooperative dialogs, as opposed to dialogs in which the goals of the participants coincide, presents novel challenges to a pragmatically oriented dialog system. PRACMA models noncooperative sales dialogs. In the role of the potential buyer of a used car, the system tries to arrive at a realistic evaluation of the unknown car in spite of biased information presentation on the ...

We investigate a model in which one seller and one buyer trade in each of two periods. The buyer has demand for one unit of a non-durable object per period. The buyer’s reservation value for the good is private information and is the same in both periods. The seller commits to prices in each of two periods. Prices in the second period may depend on the buyer’s first-period behavior. Unlike the ...

Recent trends in industrial markets indicate that buyers and sellers are increasingly supplanting conventional "arm's length" arrangements with "alliances" involving closer ties. The authors develop a theoretical model of industrial buyer-supplier ties that presents ioint action as a key aspect of closeness. Whereas conventional ties emphasize a clearly defined division of labor, these newer re...

This article examines the influences of two forms of buyout options – permanent (i.e., a buyer could buy out the item at any point during the entire bidding process) and temporary (i.e., buyout option ceases to be present once the bidding price exceeds the reserve price) – under the presence of reserve price on a buyer’s decision in online auctions. We propose that the presence of permanent buy...

Functional relationship between supplier and buyer in an open market place leads to investigate the role of both quantifiable and non-quantifiable parameters in coordination mechanism with the aim of achieving higher performance in supply chain activities. Here, we develop a supply chain model and a new agent to analyze and simulate the players’ behavior in the network. A cooperative game theor...

This paper characterizes equilibrium behavior in multilateral negotiations, an exchange process in which a buyer attempts to purchase from one of several sellers with privately known production costs. The buyer receives an initial set of price offers, then can try to play the sellers off one another to obtain concessions. Consistent with recent experimental evidence, expected prices in the nego...