Bargaining with Interdependent Values

1
Bargaining with Interdependent Values

• This is the first article to delineate an
  environment in which the Coase Conjecture forces
  (1972) operate in such a way that the outcome of
  dynamic bargaining fails to maximize the expected
  gains from trade, even when traders are very
  patient. This study enhances our understanding
  for issues like labor strikes, pre-trial
  negotiations, the acquisition of scarce
  resources, and the pricing of durable goods.

Ray Deneckere and Meng-Yu Liang (2006),
Bargaining with Interdependent Values,
Econometrica, 74(5), pp. 1309-1364.