Article ID: | iaor200916794 |
Country: | Netherlands |
Volume: | 65 |
Issue: | 4 |
Start Page Number: | 339 |
End Page Number: | 353 |
Publication Date: | Dec 2008 |
Journal: | Theory and Decision |
Authors: | Chen YiChun, Luo Xiao |
In a multilateral bargaining game where a proposer and responders can set up a ‘principal–agent’ relationship by means of binding cash–offer contracts, we show that there is a Markov SPE with a delay in reaching an agreement. We also show that all the individually rational and efficient payoffs can be supported by SPE.