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Bayesian Equilibria and Shifting Power Bargaining Games

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Abstract:

We examine all Bayesian equilibria of a large class of bargaining games with shifting power. Three types of one-sided asymmetric information are considered in isolation: costs of fighting, initial power, and the speed of the shift. Using incentive compatibility and the revelation principle, we characterize equilibria in terms of how the unconditional probability of war and the conditional expected time of war vary as functions of the privately known piece of information. Doing so allows us to establish a set findings independent of assumptions concerning the sequence of moves in any particular game. As such, our results provide a foundation on which to build more specific research
by highlighting what relationships must and which cannot hold in any equilibrium.

Most Common Document Word Stems:

r (203), k (199), p (130), w (79), state (78), time (72), war (68), conflict (66), increas (61), 1 (60), expect (53), result (51), bargain (48), rise (46), e (45), privat (45), decreas (44), case (44), probabl (43), game (43), cost (42),

Author's Keywords:

bargaining, incomplete information, power shifts, mechanism design
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MLA Citation:

Gochal, Joseph. and Levy, Jack. "Bayesian Equilibria and Shifting Power Bargaining Games" Paper presented at the annual meeting of the American Political Science Association, Hilton Chicago and the Palmer House Hilton, Chicago, IL, Sep 02, 2004 <Not Available>. 2009-05-26 <http://www.allacademic.com/meta/p60181_index.html>

APA Citation:

Gochal, J. and Levy, J. , 2004-09-02 "Bayesian Equilibria and Shifting Power Bargaining Games" Paper presented at the annual meeting of the American Political Science Association, Hilton Chicago and the Palmer House Hilton, Chicago, IL Online <.PDF>. 2009-05-26 from http://www.allacademic.com/meta/p60181_index.html

Publication Type: Conference Paper/Unpublished Manuscript
Review Method: Peer Reviewed
Abstract: We examine all Bayesian equilibria of a large class of bargaining games with shifting power. Three types of one-sided asymmetric information are considered in isolation: costs of fighting, initial power, and the speed of the shift. Using incentive compatibility and the revelation principle, we characterize equilibria in terms of how the unconditional probability of war and the conditional expected time of war vary as functions of the privately known piece of information. Doing so allows us to establish a set findings independent of assumptions concerning the sequence of moves in any particular game. As such, our results provide a foundation on which to build more specific research
by highlighting what relationships must and which cannot hold in any equilibrium.

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Associated Document Available Political Research Online

Document Type: .pdf
Page count: 28
Word count: 9228
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Bayesian Equilibria and Shifting Power Bargaining Games Joseph Gochal joseph.gochal@nyu.edu Department of Politics New York University 726 Broadway Seventh Floor New York NY 10003-6806 Jack S. Levy jacklevy@rci.rutgers.edu Department of Political Science Rutgers University 89 George Street New Brunswick NJ 08901-1411 August 20 2004 Abstract We examine all Bayesian equilibria of a large class of bargaining games with shifting power. Three types of one-sided asymmetric information are considered in isolation: costs of fighting initial power and the speed of
and the Design of Fee-Shifting Rules." RAND Journal of Economics 25:197-214. [32] Thucydides. 1996. "History of the Peloponnesian War." In Robert B. Strassler (ed.) The Landmark Thucydides. New York: Free Press. [33] Traub James. 2004. "Is Iran Going Nuclear?" The New York Times Magazine. June 13 Section 6. [34] Van Evera Stephen. 1999. Causes of War. Ithaca NY: Cornell University Press. [35] Wang Ruque. 2000. "Separating equilibria in a continuous-time bargaining model with two- sided uncertainty." International Journal of


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Bayesian Equilibria and Shifting Power Bargaining Games


 
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