Mediation in Reputational Bargaining
- (pp. 2444-72)
AbstractCan an uninformed mediator improve outcomes in a dynamic reputational bargaining model? I show that a simple communication protocol used by professional mediators, of announcing an agreement only if both parties privately accept its terms, can increase the payoffs of rational bargainers, but only if communication is noisy: the mediator must sometimes fail to suggest a deal even when both bargainers accept it.
CitationFanning, Jack. 2021. "Mediation in Reputational Bargaining." American Economic Review, 111 (8): 2444-72. DOI: 10.1257/aer.20191321
- C78 Bargaining Theory; Matching Theory
- D74 Conflict; Conflict Resolution; Alliances; Revolutions
- D83 Search; Learning; Information and Knowledge; Communication; Belief; Unawareness