A note on efficient signaling of bargaining power

Date
2000
Authors
Bac, M.
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Source Title
International Journal of Game Theory
Print ISSN
0020-7276
Electronic ISSN
1432-1270
Publisher
Springer
Volume
29
Issue
1
Pages
119 - 126
Language
English
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Abstract

Strategic delay and restricted offers are two modes of signaling bargaining power in alternating offers bargaining games. This paper shows that when both modes are available, the best signaling strategy of the "strong" type of the informed player consists of a pure strategic delay followed by an offer on the whole pie. There is no signaling motivation for issue-by-issue bargaining when the issues are perfectly substitutable.

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