On the Strategic Use of Focal Points in Bargaining Situations

  title={On the Strategic Use of Focal Points in Bargaining Situations},
  author={Maarten C. W. Janssen},
  journal={Negotiation Processes \& Communications},
  • M. Janssen
  • Published 1 April 2006
  • Negotiation Processes & Communications
This paper argues that the notion of focal points is important in understanding bargaining processes. Recent literature confines a discussion of the usefulness of the notion to coordination problems and when bargaining experiments result in outcomes that are inconsistent with a straightforward interpretation of economic theory, some notion of 'fairness' is invoked. This paper uses symmetry requirements to formalize the notion of focal points. By doing so, it explains the focality of equal split… 
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