Now showing items 1-2 of 2

  • Between anchors and aspirations: a new family of bargaining solutions 

    Authors:Karagözoğlu, Emin; Keskin, Kerim; Özcan-Tok, Elif
    Publisher and Date:(Springer, 2019)
    We study the salience and power of reference points in determining the effective anchors and aspirations in bargaining problems. Along this line we enrich the analysis of the standard bargaining model with two new parameters: the first parameter can be interpreted as the effectiveness (or salience) of the reference point in determining the anchor whereas the second parameter can be interpreted as its effectiveness in shaping agents' aspirations. Utilizing these parameters we provide a unifying ...

  • Endogenous reference points in bargaining 

    Authors:Karagözoğlu, Emin; Keskin, Kerim
    Publisher and Date:(Springer Heidelberg, 2018)
    We allow the reference point in (cooperative) bargaining problems with a reference point to be endogenously determined. Two loss averse agents simultaneously and strategically choose their reference points taking into consideration that with a certain probability they will not be able to reach an agreement and will receive their disagreement point outcomes whereas with the remaining probability an arbitrator will distribute the resource by using (an extended) Gupta-Livne bargaining solution (Gupta ...