Abstract
This note studies a two-player alternating offers bargaining model in which one of the agents has the ability to damage permanently the 'pie' bargained over. Beside the 'Rubinsteinian' bilateral monopoly outcome, I show that it is possible to select a 'harming' equilibrium in which the sequence of damages to the pie is endogenously determined. (C) 1999 Elsevier Science S.A. All rights reserved.
| Original language | English |
|---|---|
| Pages (from-to) | 315-322 |
| Number of pages | 8 |
| Journal | Economics Letters |
| Volume | 65 |
| Issue number | 3 |
| Publication status | Published - Dec 1999 |
Keywords
- bargaining
- commitment
- WAGE