Buyer Beware: Sequential Bargaining Unveils Favorable Outcomes for Sellers
The article explores how bargaining between buyers and sellers works when one side doesn't have all the information. They found that when the seller makes all the offers, every fair and direct bargaining method can be used successfully. If buyers can make counteroffers, they can avoid bad outcomes. The more offers buyers make, the fewer bargaining methods can be used. In some cases, only the best outcome for the buyer is possible. So, depending on how offers are made, the bargaining process can have different limitations.