An agenda based framework for multi-issues negotiation

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Description/Abstract

This paper presents a new model for multi-issue negotiation under time constraints in an incomplete information setting. The issues to be bargained over can be associated with a single good/service or multiple goods/services. In our agenda-based model, the order in which issues are bargained over and agreements are reached is determined endogenously, as part of the bargaining equilibrium. In this context we determine the conditions under which agents have similar preferences over the implementation scheme and the conditions under which they have conflicting preferences. Our analysis shows the existence of equilibrium even when both players have uncertain information about each other, and each agent’s information is its private knowledge. We also study the properties of the equilibrium solution and determine conditions under which it is unique, symmetric, and Paretooptimal.