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Equilibrium Behavior in Crisis Bargaining Games

Bibliographic Data

ID6231899
AuthorsJeffrey S Banks (University of Rochester, corresponding author)
Year1990
Volume34
Issue3
Pages599
Publication date1990-08-01
Peer ReviewedYes
Open AccessNo
TypeARTICLE
VenueAmerican Journal of Political Science (JOURNAL)
Journal identifiersISSN: 0092-5853 • E-ISSN: 1540-5907
PublisherJSTOR (PUBLISHER)
DOI10.2307/2111390
OpenAlexW1981550176
LanguageEN
Citations received73
References cited7

This paper analyzes a general model of two-player bargaining in the shadow of war, where one \nplayer possesses private information concerning the expected benefits of war. I derive conclusions \nabout equilibrium behavior by examining incentive compatibility constraints, where these constraints \nhold regardless of the game form; hence, the qualitative results are "game-free." I show that the \nhigher the informed player's payoff from war, the higher is his or her equilibrium payoff from settling \nthe dispute short of war, and the higher is the equilibrium probability of war. The latter result rationalizes \nthe monotonicity assumption prevalent in numerous expected utility models of war. I then \nprovide a general result concerning the equilibrium relationship between settlement payoffs and the \nprobability of war

Bargaining problem · Computer security · Economics · Incentive · Mathematical economics · Microeconomics · Political science · Private information retrieval · Spanish Civil War · Stochastic game · Auction Theory and Applications · Computer Science · Game Theory and Voting Systems · Law · Law, Economics, and Judicial Systems

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Unique citing works73
Citations per year2,03
Citation span1990 - 2026 (37)
Citation velocitycurrent
Highly citedNo
Citation typesNeutral: 73

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