This note studies a two-player alternating offers bargaining model in which one of the agents has the ability to damage permanently the 'pie' bargained over. Beside the 'Rubinsteinian' bilateral monopoly outcome, I show that it is possible to select a 'harming' equilibrium in which the sequence of damages to the pie is endogenously determined.
|Number of pages||8|
|Publication status||Published - Dec 1999|
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