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Citation

Citation
No Title

Abstract

This paper considers two alternative procedures for multi-issue bargaining, so-called sectoral approach (issue-by-issue bargaining) and single-undertaking (single package bargaining), and compares the outcomes under the alternative procedures. It is asserted that if early agreement in an issue is particularly important to a bargaining party so that it makes his overall delay costs too high, he may strictly prefer to bargain the issue separately rather than bargain both issues at once.

JEL classification: F51, F59

Keywords

Single-undertaking, Sectoral Approach, Sequential Bargaining

Language

English

References

  1. Bac, M. and H. Raff. 1996. "Issue-by-Issue Negotiations: The Role of Information and Time Preference," Games and Economic Behavior, vol. 13, no. 1, pp. 125-134
  2. Fershtman, C. 1990. "The Importance of the Agenda in Bargaining," Games and Economic Behavior, vol. 2, no. 3, pp. 224-238.
  3. Rubinstein, A. 1982. "Perfect Equilibrium in a Bargaining Model," Econometrica, vol. 50, no. 1, pp. 92-109
  4. Schott, J. J. 2000. The WTO After Seattle. Washington, D.C.: Institute for International Economics.