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JOURNALS // Matematicheskaya Teoriya Igr i Ee Prilozheniya // Archive

Mat. Teor. Igr Pril., 2011 Volume 3, Issue 2, Pages 37–49 (Mi mgta58)

This article is cited in 3 papers

Equilibrium in bargaining model with non-uniform distribution for reservation prices

Vladimir V. Mazalova, Julia S. Tokarevab

a Institute of Applied Mathematical Research Karelian Research Center of Russian Academy of Sciences
b Zabaikalsky State Humanitarian Pedagogical University named after N. Tchernishevsky

Abstract: We consider a game-theoretic bargaining model of bilateral monopoly under uncertainty. Each player has a private information about its own reservation price. The reservation prices are random variables with linear probabilistic density functions. Seller and buyer submit sealed offers and if the buyer's offer is higher than seller's offer a bargain is enacted and the good is sold. The Bayes equilibrium is derived in analytical form. The comparison of solutions in the typical states of the market is made.

Keywords: negotiations, transaction, equilibrium, reservation prices.

UDC: 519.8
BBK: 22.18я73



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