Stalemates in Bilateral Bargaining

Document Type

Article

Publication Date

1-1-2017

Publication Title

Mathematical Social Sciences

Abstract

In this paper, we develop bilateral bargaining models in which bargainers have an outside option that provide conditions for a stalemate to occur. We provide game theoretic motivations for bargainer behavior by developing their respective decisions as a result of utility maximization problems. The respective utility maximization problems are impractical for an analysis of the conditions for stalemates to occur. Thus, a system of difference equations is used to describe bargainer counteroffers. The descriptive model provides numerous conditions for stalemates to occur. It also provides a detailed description of the equilibrium in other cases.

Keywords

Stalemates in Bilateral Bargaining

Language

eng


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