Costly Concessions Give Stronger Bargainers Upper Hand in Negotiations
The article introduces a new way to understand negotiations involving multiple parties. In this approach, players can change their demands before a deadline, but it becomes more costly as time runs out. The study shows that in this game, an agreement is quickly reached without players having to switch demands, and the order in which demands are made doesn't matter. Players who are willing to commit to their demands early on have more power in the negotiation and end up with a larger share of the outcome. This model reflects real-life bargaining situations where concessions come at a cost.