Evans, R. A.

A One-Period Version of Rubinstein's Bargaining Game

Contributions to Theoretical Economics

Vol. 3 no. 1 (2003)

Abstract: A one-period, simultaneous-offers bargaining game is analyzed in which, for each player, there is a small probability that his or her proposal will not reach the other player. The unique pure strategy equilibrium offers are identical to those of the Rubinstein (1982) infinite-horizon, alternating-offers bargaining game. This provides a novel interpretation of Rubinstein's result, as well as a new non-cooperative implementation of the Nash Bargaining Solution.

Author links: Robert Evans  

Publisher's Link: https://doi.org/10.2202/1534-5971.1066