Abstract
A seemingly mild assumption of the standard alternating offers bargaining model under risk is that the breakdown event is not strictly worse than the worst agreement. When this assumption is relaxed the structure of the equilibrium set of agreements changes in an interesting way. We analyse the effect of disagreement on equilibrium, and relate our result to a class of outside option models.
| Original language | English |
|---|---|
| Pages (from-to) | 490-499 |
| Number of pages | 10 |
| Journal | Journal of Economic Theory |
| Volume | 107 |
| Issue number | 2 |
| DOIs | |
| Publication status | Published - 1 Dec 2002 |
Bibliographical note
Copyright:Copyright 2019 Elsevier B.V., All rights reserved.
Keywords
- Bargaining
- Disagreement
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