Multilateral Bargaining With Imperfect Information
Abstract We study a multilateral procedure in which responders are told only their own shares. The proposal becomes common knowledge after the response stage and responders have optimistic beliefs after off-equilibrium offers. When discounting is high, the set of equilibrium agreements is a singleton; when it is low, there is a large multiplicity of equilibrium payoffs. In contrast to earlier work, our multiple equilibria are constructed by using strategy profiles in which a responder rejects any offer that reduces his or her own share. Journal of Economic Literature Classification Numbers: C72 and C78.