Multi-period bargaining: Asymmetric information and risk aversion

Research output: Contribution to journalArticle

2 Scopus citations

Abstract

A two period bargaining model with asymmetric information is considered. An uninformed seller charges a uniform price to two buyers. A risk averse seller offers a larger price cut in period two when one buyer remains in the market than when two buyers remain. The price in period one is sensitive to the number of buyers and the seller's degree of risk aversion. The initial price charged to a single buyer may be higher or lower than the price charged to two buyers, depending on the degree of seller risk aversion.

Original languageEnglish (US)
Pages (from-to)309-315
Number of pages7
JournalEconomics Letters
Volume72
Issue number3
DOIs
StatePublished - Sep 1 2001

Keywords

  • Bargaining
  • C78
  • D82
  • Risk aversion

ASJC Scopus subject areas

  • Finance
  • Economics and Econometrics

Fingerprint Dive into the research topics of 'Multi-period bargaining: Asymmetric information and risk aversion'. Together they form a unique fingerprint.

  • Cite this