Econometrica Vol. 63 No. 6 1995
Negative Externalities May Cause Delay in Negotiation
Abstract
We study the strategic equilibria of a negotiation game where potential buyers are affected by identity-dependent, negative externalities. The unique equilibrium of long, finitely repeated generic games can either display delay--where a transaction can take place only in several stages before the deadline--or, in spite of the random element in the game, a well-defined buyer exists that obtains the object with probability close to one.
- DOI
- 10.2307/2171772
- Volume
- 63
- Issue
- 6
- Pages
- 1321
- Sources
- bibtex:phds-export.bib crossref openalex