Going alone together: Joint outside options in bilateral negotiations

Paola Manzini*, Marco Mariotti

*Corresponding author for this work

Research output: Contribution to journalArticle (Academic Journal)peer-review

8 Citations (Scopus)

Abstract

Several contractual situations are such that the parties may 'step out' of negotiations and take up outside opportunities only if there is mutual consent to do so. Examples include employer - employee negotiations, divorce and inheritance procedures, and arbitration. To analyse such cases we develop the general concept of a 'joint outside option' and study its effect in the standard bargaining game. Examples from the international trade and theory of the firm are considered in some depth.

Original languageEnglish
Pages (from-to)943-960
Number of pages18
JournalEconomic Journal
Volume114
Issue number498
DOIs
Publication statusPublished - Oct 2004

Bibliographical note

Copyright:
Copyright 2008 Elsevier B.V., All rights reserved.

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