Information collection in bargaining

Information collection in bargaining

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Article ID: iaor200972162
Country: Germany
Volume: 38
Issue: 4
Start Page Number: 481
End Page Number: 498
Publication Date: Nov 2009
Journal: International Journal of Game Theory
Authors:
Keywords: bargaining
Abstract:

I analyze a bilateral bargaining model with one-sided uncertainty about time preferences. The uninformed player has the option of halting the bargaining process to obtain additional information, when it is his turn to offer. In general, the uninformed player does not collect information when he is quite sure about his opponent's type. I identify preference settings in which the uninformed player collects information until he is sufficiently sure about his opponent's type, as long as the information source is accurate enough. The uninformed player is more likely to draw signals and is better off, if the information source is more accurate.

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