The alternating offer bargaining method under uncertainty

摘要

The alternating offer model is a non-cooperative bargaining scheme that is examined by assuming that the players do not have complete information on the feasible payoff set, and each player makes offers based on his/her estimation on the Pareto frontier. The existence and uniqueness of a stationary fictitious subgame perfect equilibrium is proved under the assumption that the estimates of the Pareto frontier used by the two players are sufficiently close to each other. Some limit properties are also investigated. The results of the paper can be applied to both deterministic and stochastic cases.