A note on efficient signaling of bargaining power

A note on efficient signaling of bargaining power

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Article ID: iaor2001938
Country: Germany
Volume: 29
Issue: 1
Start Page Number: 119
End Page Number: 126
Publication Date: Jan 2000
Journal: International Journal of Game Theory
Authors:
Keywords: bargaining
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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