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Cheap Talk Comparisons in Multi-issue Bargaining
Rick Harbaugh Indiana University - Business Economics and Public Policy; Indiana University - Department of Economics Archishman Chakraborty Schulich School, York University; City University of New York, CUNY Baruch College - Zicklin School of Business - Department of Economics and Finance April 2002 Claremont Colleges Working Paper No. 2002-04 Abstract: Bargaining over two issues as a bundle permits credible cheap talk about their relative importance even when interests are directly opposed on each issue. The resulting communication gains can exceed the gains from bundling previously identified in the monopoly pricing literature.
Keywords: cheap talk, bargaining, multidimensional cheap talk, multi-issue negotiations JEL Classifications: D72, D82, D42, C78 Working Paper SeriesDate posted: June 06, 2002 ; Last revised: March 22, 2007Suggested CitationContact Information
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