A Simple Bargaining Mechanism that Elicits Truthful Reservation Prices
@article{Brams2012ASB, title={A Simple Bargaining Mechanism that Elicits Truthful Reservation Prices}, author={Steven J. Brams and Todd R. Kaplan and D. Marc Kilgour}, journal={Group Decision and Negotiation}, year={2012}, volume={24}, pages={401-413} }
We describe a simple 2-stage mechanism whereby for two bargainers, a Buyer and a Seller, it is a weakly dominant strategy to report their true reservation prices in the 1st stage. If the Buyer reports a higher reservation price than the Seller, then the referee announces that there is a possibility for trade, and the bargainers proceed to make offers in a 2nd stage. The average of the 2nd-stage offers becomes the settlement if they both fall into the interval between the reported reservation…
2 Citations
Three procedures for inducing honesty in bargaining
- EconomicsTARK XIII
- 2011
This paper discusses three procedures that induce honest offers, although they necessarily fail to achieve maximum efficiency.
Mathematical Game Theory and Applications
- Economics
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Several classical models used in economics are presented which include Cournot, Bertrand, Hotelling, and Stackelberg as well as coverage of modern branches of game theory such as negotiation models, potential games, parlor games, and best choice games.
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