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Article
Distribution of Surplus in Sequential Bargaining with Endogenous Recognition
Public Choice (2010)
  • Huseyin Yildirim, Duke University
Abstract
I examine a sequential bargaining situation in which agents contest the right to propose an allocation. The contest can either take place at a pre-bargaining stage, yielding “persistent recognition” to propose, or recur throughout the bargaining, yielding “transitory recognition”. Equilibrium analysis reveals that surplus is distributed more unequally under persistent recognition; social cost is higher under persistent recognition if and only if it attracts a sufficient number of “active” bargainers; and individual’s incentive to propose under transitory recognition may actually increase in the number of agents, while this incentive always diminishes under persistent recognition.
Disciplines
Publication Date
2010
Citation Information
Huseyin Yildirim. "Distribution of Surplus in Sequential Bargaining with Endogenous Recognition" Public Choice Vol. 142 Iss. 1 (2010) p. 41 - 57
Available at: http://works.bepress.com/huseyin_yildirim/7/