{"id":185891,"date":"2011-01-31T00:00:00","date_gmt":"2011-01-31T13:00:00","guid":{"rendered":"https:\/\/www.microsoft.com\/en-us\/research\/msr-research-item\/reputational-bargaining-under-knowledge-of-rationality\/"},"modified":"2016-08-22T11:32:51","modified_gmt":"2016-08-22T18:32:51","slug":"reputational-bargaining-under-knowledge-of-rationality","status":"publish","type":"msr-video","link":"https:\/\/www.microsoft.com\/en-us\/research\/video\/reputational-bargaining-under-knowledge-of-rationality\/","title":{"rendered":"Reputational Bargaining Under Knowledge of Rationality"},"content":{"rendered":"<div class=\"asset-content\">\n<p>Two players announce bargaining postures to which they may become committed and then bargain over the division of a surplus. The share of the surplus that a player can guarantee herself under first-order knowledge of rationality is determined (as a function of her probability of becoming committed), as is the bargaining posture that she must announce in order to guarantee herself this much. This &#8220;maxmin&#8221; share of the surplus is large relative to the probability of becoming committed (e.g., it equals 30% if the commitment probability is 1 in 10, and equals 7% if the commitment probability is 1 in 1 million), and the corresponding bargaining posture simply demands this share plus compensation for any delay in reaching agreement. I also consider whether a larger share can be guaranteed if there is higher-order knowledge of rationality, and relate the outcome of the model to the outcomes of a broad class of discrete-time bargaining procedures with frequent offers.<\/p>\n<\/div>\n<p><!-- .asset-content --><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Two players announce bargaining postures to which they may become committed and then bargain over the division of a surplus. The share of the surplus that a player can guarantee herself under first-order knowledge of rationality is determined (as a function of her probability of becoming committed), as is the bargaining posture that she must [&hellip;]<\/p>\n","protected":false},"featured_media":195972,"template":"","meta":{"msr-url-field":"","msr-podcast-episode":"","msrModifiedDate":"","msrModifiedDateEnabled":false,"ep_exclude_from_search":false,"footnotes":""},"research-area":[13561,13548],"msr-video-type":[],"msr-locale":[268875],"msr-impact-theme":[],"msr-pillar":[],"class_list":["post-185891","msr-video","type-msr-video","status-publish","has-post-thumbnail","hentry","msr-research-area-algorithms","msr-research-area-economics","msr-locale-en_us"],"msr_download_urls":"","msr_external_url":"https:\/\/youtu.be\/zBDcy4Y5WXY","msr_secondary_video_url":"","msr_video_file":"","_links":{"self":[{"href":"https:\/\/www.microsoft.com\/en-us\/research\/wp-json\/wp\/v2\/msr-video\/185891"}],"collection":[{"href":"https:\/\/www.microsoft.com\/en-us\/research\/wp-json\/wp\/v2\/msr-video"}],"about":[{"href":"https:\/\/www.microsoft.com\/en-us\/research\/wp-json\/wp\/v2\/types\/msr-video"}],"version-history":[{"count":0,"href":"https:\/\/www.microsoft.com\/en-us\/research\/wp-json\/wp\/v2\/msr-video\/185891\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.microsoft.com\/en-us\/research\/wp-json\/wp\/v2\/media\/195972"}],"wp:attachment":[{"href":"https:\/\/www.microsoft.com\/en-us\/research\/wp-json\/wp\/v2\/media?parent=185891"}],"wp:term":[{"taxonomy":"msr-research-area","embeddable":true,"href":"https:\/\/www.microsoft.com\/en-us\/research\/wp-json\/wp\/v2\/research-area?post=185891"},{"taxonomy":"msr-video-type","embeddable":true,"href":"https:\/\/www.microsoft.com\/en-us\/research\/wp-json\/wp\/v2\/msr-video-type?post=185891"},{"taxonomy":"msr-locale","embeddable":true,"href":"https:\/\/www.microsoft.com\/en-us\/research\/wp-json\/wp\/v2\/msr-locale?post=185891"},{"taxonomy":"msr-impact-theme","embeddable":true,"href":"https:\/\/www.microsoft.com\/en-us\/research\/wp-json\/wp\/v2\/msr-impact-theme?post=185891"},{"taxonomy":"msr-pillar","embeddable":true,"href":"https:\/\/www.microsoft.com\/en-us\/research\/wp-json\/wp\/v2\/msr-pillar?post=185891"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}