CARESS Working Paper # 0210 “ IS BARGAINING OVER PRICES EFFICIENT ? ”

Abstract

We consider the problem of two agents bargaining over the relative price of two goods they are endowed with. They alternatingly exchange price offers and the utilities are discounted. The recipient of an offer can either accept it and choose the quantities to be traded, or reject and counteroffer a different relative price. We study the set of equilibria as… (More)

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