NEGATIVE EXTERNALITIES MAY CAUSE DELAY IN NEGOTIATION

Authors
JEHIEL P MOLDOVANU B
Citation
P. Jehiel et B. Moldovanu, NEGATIVE EXTERNALITIES MAY CAUSE DELAY IN NEGOTIATION, Econometrica, 63(6), 1995, pp. 1321-1335
Citations number
13
Categorie Soggetti
Economics,"Social Sciences, Mathematical Methods","Mathematical, Methods, Social Sciences
Journal title
Econometrica → ACNP
ISSN journal
00129682
Volume
63
Issue
6
Year of publication
1995
Pages
1321 - 1335
Database
ISI
SICI code
0012-9682(1995)63:6<1321:NEMCDI>2.0.ZU;2-X
Abstract
We study the strategic equilibria of a negotiation game where potentia l buyers are affected by identity-dependent, negative externalities. T he unique equilibrium of long, finitely repeated generic games can eit her display delay-where a transaction can take place only in several s tages before the deadline-or, in spite of the random element in the ga me, a well-defined buyer exists that obtains the object with probabili ty close to one.