Journal Of The Econometric Society

An International Society for the Advancement of Economic
Theory in its Relation to Statistics and Mathematics

Edited by: Guido W. Imbens • Print ISSN: 0012-9682 • Online ISSN: 1468-0262

Econometrica: Sep, 1985, Volume 53, Issue 5

Equilibrium in a Market with Sequential Bargaining<1133:EIAMWS>2.0.CO;2-X
p. 1133-1150

Ariel Rubinstein, Asher Wolinsky

This paper considers a market where pairs of agents who are interested in carrying out a transaction are brought together by a stochastic process and, upon meeting, initiate a bargaining process over the terms of the transaction. The basic bargaining problem is treated with the strategic approach. The paper derives the steady state equilibrium agreements; analyzes their dependence on market conditions such as the relative numbers of agents of different types; and discusses their relations with the competitive equilibrium outcome and other results in the search equilibrium literature.

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