A note on multi-issue bargaining with a finite set of alternatives (Q2491081)

The author describes two bilateral multi-issue bargaining procedures with complete information for the players. In both procedures, when bargaining frictions are small enough, there exists a large multiplicity of equilibrium agreements, including ones with arbitrarily long delays. It is also shown that in the first procedure called issue-by-issue or restricted agenda bargaining, the stationary subgame perfect equilibria may support a large multiplicity of inefficient agreements. In the second procedure called unrestricted agenda bargaining, strictly controversial issues are not necessary in order to find multiplicity and delay in agreements.