## Abstract

Two players bargain to select a utility allocation in some set X⊂R+2. Bargaining takes place in infinite discrete time, where each period t is divided into two sub-periods. In the first sub-period, the players play a simultaneous-move game to determine that period’s proposer, and bargaining takes place in the second sub-period. Rejection triggers a one-period delay and move to t+ 1. For every x∈X∩R++2, there exists a cutoff δ(x) < 1 , such that if at least one player has a discount factor above δ(x) , then for every y∈ X that satisfies y≥ x there exists a subgame perfect equilibrium with immediate agreement on y. The equilibrium is supported by “dictatorial threats.” These threats can be dispensed with if X is the unit simplex and the target-vector is Pareto efficient. The results can be modified in a way that allows for arbitrarily long delays in equilibrium.

Original language | English |
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Pages (from-to) | 389-399 |

Number of pages | 11 |

Journal | Theory and Decision |

Volume | 86 |

Issue number | 3-4 |

DOIs | |

State | Published - 1 May 2019 |

### Bibliographical note

Publisher Copyright:© 2019, Springer Science+Business Media, LLC, part of Springer Nature.

## Keywords

- Bargaining
- Endogenous protocol
- Folk theorems

## ASJC Scopus subject areas

- General Decision Sciences
- Developmental and Educational Psychology
- Arts and Humanities (miscellaneous)
- Applied Psychology
- General Social Sciences
- Economics, Econometrics and Finance (all)
- Computer Science Applications