For repeated ultimatum bargaining, the Folk Theorem of repeated game the-
ory suggests that there are many equilibria, among them equilibria in which the
second mover, say, the buyer, appropriates all the surplus. This paper shows that
the presence of outside options in form of alternative trading partners eliminates
some of these equilibria by reducing the cope for extracting surplus in repeated
bargaining. The structure of optimal equilibria is characterized.
Dieser Eintrag ist Teil der Universitätsbibliographie.
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