A continuous-time model of bilateral bargaining

This paper constructs a continuous-time model of bilateral bargaining to study how fluctuations in bargaining power affect the outcomes of negotiations. The paper deals with the technical complexities that arise when modeling games in continuous time by building strategy restrictions into the equilibrium definition. These restrictions select a unique equilibrium, which is characterized by a system of ordinary differential equations. This unique equilibrium corresponds to the limiting subgame perfect equilibrium of discrete-time bargaining games with frequent offers.

• Publication year

  2019

• Venue

  Games Econ. Behav.

• Publication date

  2019-01-01

• Fields of study

  Computer Science, Economics

• Identifiers
  DOI 10.1016/J.GEB.2018.12.001
• External record

  Open on Semantic Scholar

• Source metadata

  Semantic Scholar

• No claims are published for this paper.

• No concepts are published for this paper.

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