Working Paper No. 692

Immediate Agreement in Interdependent Bilateral Bargaining

Published: January 25, 2007Pages: 27Keywords: Bilateral Oligopoly; Intermediate Goods; Bargaining; Market Network; Trade LinkJEL-codes: C70; D20; D40; L10; L40

Immediate Agreement in Interdependent Bilateral Bargaining Jonas Björnerstedt and Johan Stennek


This note provides sufficient conditions for immediate agreement in an extensive form model of interdependent bilateral bargaining. The model is suggested by Björnerstedt and Stennek (2006) as a work horse for studying bilateral oligopoly. The key feature of this model is that the firms are represented by separate agents in all negotiations in which they are involved. There is immediate agreement in equilibrium, essentially if production is strictly convex or if the agents use Markov strategies.

 

An Agenda for Europe

Institutional Reform for Innovation and Entrepreneurship

Omslag 2017 Institutional Reform for Innovation and Entrepreneurship.jpg

The authors of this book, Niklas Elert, Magnus Henrekson and Mikael Stenkula, advise the economies of the European Union to become more entrepreneurial in promoting innovation and economic growth. The authors propose a reform strategy with respect to several aspects to achieve this goal.

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