Econometrica: Apr 1968, Volume 36, Issue 2
Restricted Bargaining for Organizations with Multiple Objectives
Bruno Contini, Stanley ZiontsIn this paper we show that a bargaining game will yield a negotiated solution with certain reasonable properties if the rules of the game are appropriately restricted. The basic idea is to provide an incentive for all the group components to engage in a process of concessions until the point where some agreement is reached. The incentive consists of the threat of a preannounced "imposed" solution which will be enforced if no settlement can be reached.
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