Bargaining with asymmetric information in non-stationary markets

DOI10.1007/S001990050271MaRDI QIDQ1293741zbMATH OpenOpenAlexFDO

Authors Daniel Trefler

Publication date 29 June 1999

Published in Economic Theory (Search for Journal in Brave)

Full work available at URL https://doi.org/10.1007/s001990050271

zbMATH Keywords

market modelsmatchingnon-cooperative bargainingoutput fluctuations

Mathematics Subject Classification ID

Auctions, bargaining, bidding and selling, and other market models (91B26) Matching models (91B68)

Review text

In the paper the author imbeds into a market an extensive form game in which an uninformed seller makes all the offers to an informed buyer. Here, the generically unique sequential equilibrium outcome for this game is characterized. This result is used to establish the existence of a market equilibrium and to characterize its generically unique outcome. The impact of market supply and demand on bilateral bargaining outcomes and matching probabilities is explored. Moreover, it is shown how these conclusions can be extended to a large class of extensive-form bargaining games including games with alternating offers, two-sided uncertainty, and outside options. The results are useful for investigation of such questions as why coordination failures and macroeconomics output fluctuations are correlated with real and monetary shocks.

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Cited in

(13)

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• Bargaining in a non-stationary environment.
• Sequential bargaining under asymmetric information
• Bargains, price signaling, and efficiency in markets with asymmetric information
• A multistage exchange trading model with asymmetric information and elements of bargaining
• Asymmetric Information Bargaining Problems with Many Agents
• A Sequential Concession Game with Asymmetric Information
• Non-cooperative bargaining and the incomplete informational core
• The Scope of Anonymous Voluntary Bargaining Under Asymmetric Information
• Pirates of the Mediterranean: An empirical investigation of bargaining with asymmetric information
• Bargaining with asymmetric information: an empirical study of plea negotiations
• Asymmetric Information, Bargaining, and Unemployment Fluctuations
• A new equilibrium in the one-sided asymmetric information market with pairwise meetings

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