Cheap Talk Comparisons in Multi-Issue Bargaining

9 Pages Posted: 6 Jun 2002

See all articles by Rick Harbaugh

Rick Harbaugh

Indiana University - Kelley School of Business - Department of Business Economics & Public Policy; Indiana University - Department of Economics

Archishman Chakraborty

York University - Schulich School of Business

Date Written: April 2002

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 Classification: D72, D82, D42, C78

Suggested Citation

Harbaugh, Rick and Chakraborty, Archishman, Cheap Talk Comparisons in Multi-Issue Bargaining (April 2002). Available at SSRN: https://ssrn.com/abstract=315083 or http://dx.doi.org/10.2139/ssrn.315083

Rick Harbaugh (Contact Author)

Indiana University - Kelley School of Business - Department of Business Economics & Public Policy ( email )

Bloomington, IN 47405
United States
812-855-2777 (Phone)
812-855-3354 (Fax)

HOME PAGE: http://www.bus.indiana.edu/riharbau/

Indiana University - Department of Economics ( email )

Wylie Hall
Bloomington, IN 47405-6620
United States

Archishman Chakraborty

York University - Schulich School of Business ( email )

4700 Keele Street
Toronto, Ontario M3J 1P3
Canada

HOME PAGE: http://www.yorku.ca/archish/

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