Delay in a bargaining game with contracts
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In a multilateral bargaining game where a proposer and responders can set up a “principal–agent” relationship by means of binding cash-offer contracts, we show that there is a Markov SPE with a delay in reaching an agreement. We also show that all the individually rational and efficient payoffs can be supported by SPE.
KeywordsGame theory Multilateral bargaining Delay Contracts
JEL ClassificationC72 C78
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