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Games 2016, 7(2), 12; doi:10.3390/g7020012

Time-Preference Heterogeneity and Multiplicity of Equilibria in Two-Group Bargaining

Departament d’Economia Aplicada, Universitat de les Illes Balears, Campus UIB, 07122 Palma de Mallorca, Spain
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Academic Editor: Bahar Leventoglu
Received: 16 September 2015 / Revised: 14 March 2016 / Accepted: 14 March 2016 / Published: 12 May 2016
(This article belongs to the Special Issue Bargaining Games)
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Abstract

We consider a multilateral bargaining game in which the agents can be classified into two groups according to their instantaneous preferences. In one of these groups there is one agent with a different discount factor. We analyze how this time-preference heterogeneity may generate multiplicity of equilibria. When such an agent is sufficiently more patient than the rest, there is an equilibrium in which her group-mates make the same proposal as the members of the other group. Thus, in heterogeneous groups the presence of more patient members may reduce the utility of its members. View Full-Text
Keywords: multilateral bargaining; one-dimensional; multiple equilibria; time preference; C78 multilateral bargaining; one-dimensional; multiple equilibria; time preference; C78
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This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited. (CC BY 4.0).

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Cardona, D.; Rubí-Barceló, A. Time-Preference Heterogeneity and Multiplicity of Equilibria in Two-Group Bargaining. Games 2016, 7, 12.

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