Coordination and bargaining power in contracting with externalities

@article{Galasso2008CoordinationAB,
  title={Coordination and bargaining power in contracting with externalities},
  author={Alberto Galasso},
  journal={J. Economic Theory},
  year={2008},
  volume={143},
  pages={558-570}
}
Building on Genicot and Ray (2006) we develop a model on non-cooperative bargaining that combines the two main approaches in the literature of contracting with externalities: the o¤er game (in which the principal makes simultaneous o¤ers to the agents) and the bidding game (in which the agents make simultaneous o¤ers to the principal). Allowing for agent… CONTINUE READING