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Bargaining and Markets

Bargaining and Markets
Author: Martin Osborne, Ariel Rubinstein
Url: http://www.economics.utoronto.ca/osborne/bm/
Format: Pdf
Year: 2005
Category: Game Theory
Pages: 228
Clicks: 120

The formal theory of bargaining originated with John Nashs work in the early 1950s. In this book we discuss two recent developments in this theory. The first uses the tool of extensive games to construct theories of bargain- ing in which time is modeled explicitly. The second applies the theory of bargaining to the study of decentralized markets. We do not attempt to survey the field. Rather, we select a small number of models, each of which illustrates a key point. We take the approach that a thorough analysis of a few models is more rewarding than short discussions of many models. Some of our selections are arbitrary and could be replaced by other models that illustrate similar points.

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