We study the effect of imperfect commitment in noncooperative two-person ba
rgaining games. By establishing the reputation for being stubborn, a player
sometimes commits to her initial demand, becoming unable to change her dem
ands or to accept an inferior offer from her opponent. When the probability
of being stubborn is small, the set of equilibria is shown to be small and
agreement may be reached immediately despite the possibility of stubbornne
ss. A player has greater bargaining power when she is more patient and/or i
s more likely to be stubborn. Journal of Economic Literature Classification
Number: C78. (C) 1999 Academic Press.