BARGAINING RULES OF THUMB

A steady-state, random-matching game model is used to described bargai ning in a large Population, where bargainers choose rules of thumb to apply across the board in a class of bargaining situations they face. The unique population equilibrium rule distributions are computed for certain cases of the model. These are then used in an exercise to anal yze the relationship between a society's wealth and the relative frequ ency of haggled transactions in the society.