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19 octobre 2023
- 2310.13148
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Economics - Theoretical EconomicsSujets proches
Negotiations Bargaining Haggling Negotiating Higgling Dickering Economic theory Political economy Bargaining Labor negotiationsCiter ce document
Jenny S Kim et al., « Persuasion in Veto Bargaining », arXiv - économie
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Résumé
We consider the classic veto bargaining model but allow the agenda setter to engage in persuasion to convince the veto player to approve her proposal. We fully characterize the optimal proposal and experiment when Vetoer has quadratic loss, and show that the proposer-optimal can be achieved either by providing no information or with a simple binary experiment. Proposer chooses to reveal partial information when there is sufficient expected misalignment with Vetoer. In this case the opportunity to engage in persuasion strictly benefits Proposer and increases the scope to exercise agenda power.