“Undertable Negotiation” by Duozhe LI
The Chinese University of Hong Kong
We study a multilateral bargaining game with imperfect information. Players take turns to make offers. Each responder observes only the offer to him, and his response to the offer is also made privately. Agreement is reached if all offers are accepted. Otherwise, the game proceeds to next period, in which another player is called upon to make offers. Previous offers and responses are never revealed, thus they never become common knowledge among players. With a plausible restriction on players’ beliefs, we obtain a unique public perfect equilibrium. The uniqueness result remains valid even if we take private strategies into consideration. The bargaining procedure is robust to collusions among any subgroup of players.