A continuous-time model of multilateral bargaining
Publication
, Journal Article
Ambrus, A; En Lu, SE
Published in: American Economic Journal: Microeconomics
January 1, 2015
We propose a finite-horizon continuous-time framework for coalitional bargaining, in which players can make offers at random discrete times. In our model: (i) expected payoffs in Markov perfect equilibrium (MPE) are unique, generating sharp predictions and facilitating comparative statics; and (ii) MPE are the only subgame perfect Nash equilibria (SPNE) that can be approximated by SPNE of nearby discrete-time bargaining models. We investigate the limit MPE payoffs as the time horizon goes to infinity and players get infinitely patient. In convex games, we establish that the set of these limit payoffs achievable by varying recognition rates is exactly the core of the characteristic function.
Duke Scholars
Published In
American Economic Journal: Microeconomics
DOI
EISSN
1945-7685
ISSN
1945-7669
Publication Date
January 1, 2015
Volume
7
Issue
1
Start / End Page
208 / 249
Related Subject Headings
- 14 Economics
Citation
APA
Chicago
ICMJE
MLA
NLM
Ambrus, A., & En Lu, S. E. (2015). A continuous-time model of multilateral bargaining. American Economic Journal: Microeconomics, 7(1), 208–249. https://doi.org/10.1257/mic.20100029
Ambrus, A., and S. E. En Lu. “A continuous-time model of multilateral bargaining.” American Economic Journal: Microeconomics 7, no. 1 (January 1, 2015): 208–49. https://doi.org/10.1257/mic.20100029.
Ambrus A, En Lu SE. A continuous-time model of multilateral bargaining. American Economic Journal: Microeconomics. 2015 Jan 1;7(1):208–49.
Ambrus, A., and S. E. En Lu. “A continuous-time model of multilateral bargaining.” American Economic Journal: Microeconomics, vol. 7, no. 1, Jan. 2015, pp. 208–49. Scopus, doi:10.1257/mic.20100029.
Ambrus A, En Lu SE. A continuous-time model of multilateral bargaining. American Economic Journal: Microeconomics. 2015 Jan 1;7(1):208–249.
Published In
American Economic Journal: Microeconomics
DOI
EISSN
1945-7685
ISSN
1945-7669
Publication Date
January 1, 2015
Volume
7
Issue
1
Start / End Page
208 / 249
Related Subject Headings
- 14 Economics