Asset Details
Do you wish to reserve the book?
BARGAINING UNDER STRATEGIC UNCERTAINTY: THE ROLE OF SECOND-ORDER OPTIMISM
Hey, we have placed the reservation for you!
By the way, why not check out events that you can attend while you pick your title.
Oops! Something went wrong.
Looks like we were not able to place the reservation. Kindly try again later.
Are you sure you want to remove the book from the shelf?
BARGAINING UNDER STRATEGIC UNCERTAINTY: THE ROLE OF SECOND-ORDER OPTIMISM
Do you wish to request the book?
BARGAINING UNDER STRATEGIC UNCERTAINTY: THE ROLE OF SECOND-ORDER OPTIMISM
Please be aware that the book you have requested cannot be checked out. If you would like to checkout this book, you can reserve another copy
We have requested the book for you!
Your request is successful and it will be processed during the Library working hours. Please check the status of your request in My Requests.
Oops! Something went wrong.
Looks like we were not able to place your request. Kindly try again later.
Journal Article
BARGAINING UNDER STRATEGIC UNCERTAINTY: THE ROLE OF SECOND-ORDER OPTIMISM
2019
Overview
This paper shows that bargainers may reach delayed agreements even in environments where there is no uncertainty about payoffs or feasible actions. Under such conditions, delay may arise when bargainers face direct forms of strategic uncertainty—that is, uncertainty about the opponent's play. The paper restricts the nature of this uncertainty in two important ways. First, it assumes on-path strategic certainty: Bargainers face uncertainty only after surprise moves. Second, it assumes Battigalli and Siniscalchi's (2002) rationality and common strong belief of rationality (RCSBR)—a requirement that bargainers are \"strategically sophisticated.\" The main result characterizes the set of outcomes consistent with on-path strategic certainty and RCSBR. It shows that these assumptions allow for delayed agreement, despite the fact that the bargaining environment is one of complete information. The source of delay is second-order optimism: Bargainers do not put forward \"good\" offers early in the negotiation process because they fear that doing so will cause the other party to become more optimistic about her future prospects.
Publisher
Econometric Society,Blackwell Publishing Ltd
Subject
