Notes: Bargaining (Game Theory 101)
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Unit 0: The Prelude
The Bargaining Problem Using Game Theory Sources of Bargaining Power
Unit 1: The Ultimatum Game
The Ultimatum Game’s Assumptions The Ultimatum Game (Discrete) Other Solutions to the Ultimatum Game The Ultimatum Game (Continuous) Ultimatum Game Uniqueness Proof
Unit 2: Bargaining with Counteroffers
The Power of Counteroffers The “Power” of Rejection Alternating Offers
Unit 3: Rubinstein Bargaining
Rubinstein Bargaining First Offer Advantage Rubinstein Convergence Proof Why the Rich Get Richer Rubinstein Uniqueness Proof
Unit 4: Increasing Bargaining Power
The Power of Outside Options The Value of Being Unique Risky Business Making Threats Credible
Unit 5: Bargaining Under Uncertainty
Introduction to Uncertainty Uncertainty and Bargaining Failure Incentives to Misrepresent Knowledge Is Power Risk-Return Tradeoff Playing It Safe Uncertainty with Continuous Types The Myserson-Satterthwaite Theorem The Skimming Property