Strategic Bargaining in Search Models: An Overview

Jayasena, Arun and Libir, Mumi and Rahmat, Omar (2021): Strategic Bargaining in Search Models: An Overview.

Abstract

This paper provides a survey on strategic bargaining in decentralized markets with search frictions. We review how alternating-offers bargaining, renegotiation risks, and participation constraints shape outcomes in both random and directed search environments. We discuss implications for labor, product, and credit markets, with particular attention to cases where posted terms do not fully determine final outcomes.

• Item Type: MPRA Paper
• Language: English
• Keywords: Strategic Bargaining, Search Models
• Subjects: D - Microeconomics > D4 - Market Structure, Pricing, and Design > D40 - General; L - Industrial Organization > L0 - General > L00 - General

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