Negotiation as the Art of the Deal
Abstract
Negotiation is a ubiquitous and consequential form of economic interaction. It is deal-making in the absence of a designer. We propose a theory of negotiation in which deals have many aspects. This leads to a new perspective on the welfare consequences of asymmetric information, which we examine via both theory and experiments. In a robust class of settings of asymmetric information, it is in each agent’s interest to truthfully reveal her private information, which comes about because of the benefits of identifying areas of mutual gain. We show that equilibria are efficient, with significant implications for applications.
The paper is available below:
www.nuffield.ox.ac.uk/media/2534/bargaining-mp-04122018.pdf
Date:
24 April 2018, 12:45 (Tuesday, 1st week, Trinity 2018)
Venue:
Nuffield College, New Road OX1 1NF
Venue Details:
SCR
Speaker:
Hugo Sommenschein (University of Chicago)
Organising department:
Department of Economics
Organisers:
Anne Pouliquen (University of Oxford),
Erin Saunders (University of Oxford)
Part of:
Economic Theory Workshop
Booking required?:
Not required
Audience:
Members of the University only
Editors:
Erin Saunders,
Anne Pouliquen,
Melis Clark
