Going alone together: Joint outside options in bilateral negotiations

P Manzini, M Mariotti

    Research output: Contribution to journalArticlepeer-review

    8 Citations (Scopus)

    Abstract

    Several contractual situations are such that the parties may 'step out' of negotiations and take up outside opportunities only if there is mutual consent to do so. Examples include employer - employee negotiations, divorce and inheritance procedures, and arbitration. To analyse such cases we develop the general concept of a 'joint outside option' and study its effect in the standard bargaining game. Examples from the international trade and theory of the firm are considered in some depth.

    Original languageEnglish
    Pages (from-to)943-960
    Number of pages18
    JournalThe Economic Journal
    Volume114
    Issue number498
    Publication statusPublished - Oct 2004

    Keywords

    • PERFECT EQUILIBRIUM
    • BARGAINING MODEL
    • PROPERTY-RIGHTS
    • ASSET OWNERSHIP
    • COSTS
    • FIRM

    Fingerprint

    Dive into the research topics of 'Going alone together: Joint outside options in bilateral negotiations'. Together they form a unique fingerprint.

    Cite this