Proposal power and majority rule in multilateral bargaining with costly recognition

Loading...
Thumbnail Image

Date

2007-09-01

Journal Title

Journal ISSN

Volume Title

Repository Usage Stats

303
views
671
downloads

Citation Stats

Abstract

This paper studies a sequential bargaining model in which agents expend efforts to be the proposer. In equilibrium, agents' effort choices are influenced by the prize and cost effects. The (endogenous) prize is the difference between the residual surplus an agent obtains when he is the proposer and the payment he expects to receive when he is not. Main results include: (1) under the unanimity voting rule, two agents with equal marginal costs propose with equal probabilities, regardless of their time preferences; (2) under a nonunanimity rule, however, the more patient agent proposes with a greater probability; (3) while, under the unanimity rule, the social cost decreases in group heterogeneity, it can increase under a nonunanimity rule; and (4) when agents are identical, the unanimity rule is socially optimal. © 2006 Elsevier Inc. All rights reserved.

Department

Description

Provenance

Subjects

Citation

Published Version (Please cite this version)

10.1016/j.jet.2006.07.008

Publication Info

Yildirim, H (2007). Proposal power and majority rule in multilateral bargaining with costly recognition. Journal of Economic Theory, 136(1). pp. 167–196. 10.1016/j.jet.2006.07.008 Retrieved from https://hdl.handle.net/10161/1936.

This is constructed from limited available data and may be imprecise. To cite this article, please review & use the official citation provided by the journal.


Unless otherwise indicated, scholarly articles published by Duke faculty members are made available here with a CC-BY-NC (Creative Commons Attribution Non-Commercial) license, as enabled by the Duke Open Access Policy. If you wish to use the materials in ways not already permitted under CC-BY-NC, please consult the copyright owner. Other materials are made available here through the author’s grant of a non-exclusive license to make their work openly accessible.