Bargaining and Markets docx

... p ∗ H . 9.2 Random Matching At the beginning of each period the seller is randomly matched with one of the two buyers, and one of the matched parties is selected randomly to make a proposal. Each random ... offer, and let M I and m I (I = H, L) be the suprema and infima, respectively, of B I ’s payoff over all subgame perfect equilibria of the game in which B I is bargaining with the s...

Ngày tải lên: 21/06/2014, 09:20

... by Bulow and Rogoff (1989) and Fernandez and Rosenthal (1990). The idea of endogenizing the timetable of bargaining when many issues are being negotiated is studied by Fershtman (1990) and Herrero ... in this case. Haller (1991), Haller and Holden (1990), and Fernandez and Glazer (1991) (see also Jones and McKenna (1988)) study a situation in which a firm and a union bargain...

Ngày tải lên: 08/04/2014, 12:15

... 2.1 A bargaining problem is a pair S, d, where S ⊂ R 2 is com- pact (i.e. closed and bounded) and convex, d ∈ S, and there exists s ∈ S such that s i > d i for i = 1, 2. The set of all bargaining ... continue bargaining, rather than to opt out. Let M 1 and m 2 be defined as in the proof of Proposition 3.5. By the arguments in Steps 1 and 2 of the proof of Theorem 3.4 we hav...

Ngày tải lên: 08/04/2014, 12:30

... strategy sets of the different types of buyer, and of seller, are the same, and the outcome of bargaining is a function only of the strategies used by the seller and the buyer. Any function that selects a ... satisfies IR and IC, then from (5.1) and (5.2) we have U M (s 1 ) ≥ (s 2 −s 1 )/2 and U M (b 2 ) ≥ (b 2 −b 1 )/2. Now, since the seller has reservation value s 1 with probabi...

Ngày tải lên: 21/06/2014, 09:20

... period t. S and B stand for the seller and the buyer, and Y and N stand for acceptance and rejection. The numbers beside the branches are the probabilities with which the branches occur. and seller ... → D S p ∗ p                                ❅ ❅ ❅ ❅ ❅ ❅ ❅ ❅ ❅ ❅ ❅ ❅ ❅ ❅ ❅ ❅ ❅ ❅ ❅ ❅ ❅ ❅ ❅ ❅ ❅ ❅ ❅ ❅ ❅ ❅ ❅ ❅ ❅ ❅ Figure 7.3 Demand and supply curves i...

Ngày tải lên: 21/06/2014, 09:20

... the seller and buyer are zero and one respectively, and no agent is impatient). If an agent neve r trades the n his utility is zero. Matching In each period any remaining sellers and buyers are ... independent of history. Bargaining After a buyer and a seller have been matched they engage in a short bargaining process. First, one of the matched agents is selected randomly (with...

Ngày tải lên: 21/06/2014, 09:20

... References Ausubel, L. M. and R. J. Deneckere (1992b), Bargaining and the Right to Remain Silent”, Econo metrica 60, 597–625. [119] Baron, D. P., and J. A. Ferejohn (1987), Bargaining and Agenda Forma- tion ... [27] Hendon, E., and T. Tranæs (1991), “Sequential Bargaining in a Market with One Seller and Two Different Buyers’, Games and Economic Behavior 3, 453–466. [187] Herr...

Ngày tải lên: 21/06/2014, 09:20

... information between Players 1 and 2 H , and between Players 1 and 2 L , we refer to Player 2 H as “weak” and to Player 2 L as “strong”. Following convention we sometimes refer to 2 H and 2 L as types of ... p H (h). If p H (h) = 0 and only the strategy of 2 H rejects x T +1 and counterof- fers x T +2 then p H (h  ) = 1; if p H (h) = 1 and only the strategy of 2 L rejects x...

Ngày tải lên: 22/06/2014, 17:20

... short-selling and emerging markets. 6 Global macro strategies focus on liquid index pr oducts and deri vatives written on broad equity, bond, commodity and forei gn exchange instruments and, thus, ... financial markets such as changes in policy rates by central banks (Bernanke and Kut tner, 2005) and other macro-economic news releases (Hess, Huang, and Ni essen, 2008; Bo...

Ngày tải lên: 14/02/2014, 15:20

... demand, which have gone hand-in-hand with changes in the prices of energy and industrial metals. Commodity prices declined sharply in the fall of 2008, as the financial crisis intensified and ... cyclical changes in economic activity and more exogenous changes related to concerns about long-term growth. Both Ramey and Shapiro (1998) and Romer and Romer (2010) find significant...

Ngày tải lên: 17/02/2014, 03:20