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• W2184804554 abstract "This paper provides a novel understanding of delays in reaching agreements based on the idea of strategic uncertainty|i.e., the idea that a Bargainer may face uncertainty about her opponent’s play, even if there is no uncertainty about the structure of the game. It considers a particular form of strategic uncertainty, called on path strategic certainty. This is the assumption that strategic uncertainty can only arise after surprise moves in the negotiation process. The paper shows that Bargainers who engage in forward induction reasoning can face strategic uncertainty after surprise moves. Moreover, rational Bargainers who engage in forward induction reasoning and satisfy on path strategic certainty may experience delays in reaching agreements. The paper goes on to characterize the behavioral implications of rationality, forward induction reasoning, and on path strategic certainty. Bargaining is an important feature of many economic and political phenomena. Understanding how negotiators form agreements is instrumental to understanding employment contracts, legislative outcomes, sovereign debt, etc. In each of these applications, we observe an important behavioral feature: at times, parties fail to reach an immediate agreement. Such failures lead to strikes, holdouts, legislative stalemates, delays in renegotiating debt contracts, etc., which in turn have important (and sometimes long-term) economic consequences. What is the source of such negotiation failures? Many answers have been put forward in the literature. One natural answer is that such failures reect" @default.
• W2184804554 created "2016-06-24" @default.
• W2184804554 creator A5073319872 @default.
• W2184804554 date "2014-01-01" @default.
• W2184804554 modified "2023-09-26" @default.
• W2184804554 title "Bargaining Under Strategic Uncertainty" @default.
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