Premium
DECENTRALIZED ONE‐TO‐MANY BARGAINING
Author(s) -
Ko Chiu Yu,
Li Duozhe
Publication year - 2020
Publication title -
international economic review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 2.658
H-Index - 86
eISSN - 1468-2354
pISSN - 0020-6598
DOI - 10.1111/iere.12452
Subject(s) - mathematical economics , set (abstract data type) , order (exchange) , economics , bargaining problem , microeconomics , protocol (science) , computer science , medicine , alternative medicine , finance , pathology , programming language
We study a one‐to‐many bargaining model in which one active player bargains with every passive player on how to share the surplus of a joint project. The order of bargaining is not fixed and the active player decides whom to bargain with in each period. Our model admits a rich set of equilibria and we identify the upper and lower bounds of equilibrium payoffs. We also examine whether two natural ordering protocols often assumed in existing studies can sustain endogenously. Although the queuing protocol may indeed arise in an equilibrium, the rotating protocol is in general not self‐enforcing.