Bargaining Tactics Expose Pareto-Improving Options, Benefiting Weaker Parties
The article explores how different bargaining systems influence the sharing of information about possible solutions. In some cases, withholding better options can lead to inefficiency. The researchers created a model to show that some bargaining solutions encourage disclosing superior options, benefiting the weaker party. They found that in a simple scenario, the best solution aligns with the Nash solution, ranking above other methods like the coin-toss solution. The study also looks at how timing can impact the disclosure of information in dynamic bargaining situations.