The first unified and
systematic treatment of the modern theory of bargaining, presented together with many
examples of how that theory is applied in a variety of bargaining situations. Abhinay
Muthoo provides a masterful synthesis of the fundamental results and insights obtained
from the wide-ranging and diverse (game-theoretic) bargaining theory literature.
Furthermore, he develops new analyses and results, especially on the relative impacts of
two or more forces on the bargaining outcome. Many topics - such as inside options,
commitment tactics and repeated bargaining situations - receive their most extensive
treatment to date. In the concluding chapter, he offers pointers towards future research.
Bargaining Theory with Applications is a textbook for graduate students in economic theory
and other social sciences and a research resource for scholars interested in bargaining
situations.
Reviews
'Professor Muthoo's book
covers an enormous literature on the 'alternating offers' model of bargaining that has
developed since the publication of Rubinstein's classic paper. The strengths of the book
are its clear and rigorous style, the thoroughness of its analysis, and the wealth of
illuminating and useful applications of the theory to practical economic problems, which
are developed throughout the text. This book could be used as a text for a one-semester
graduate course on bargaining theory or game theory; it is also a book that any economic
theorist should want to have as a reference.' Douglas Gale, New York University
'Muthoo has done a
splendid job of synthesizing the extensive recent literature on bargaining theory. The
book is lucid and accessible and contains a wealth of interesting applications. It will be
a great resource for advanced undergraduate and graduate students.' Oliver Hart, Harvard
University
' ... Abhinay Muthoo's
book provides an invaluable resource. It will be useful both to game theorists seeking a
synthesis of bargaining theory and to economists seeking to apply it to labour, trade,
business or other kinds of negotiations.' John McMillan, University of California, San
Diego
' ... Muthoo impressively
demonstrates how bargaining theory can be applied to many important economic problems ...
Muthoo's book is an excellent starting point for economists who want to contribute to
this research ... students as well as researchers will benefit from reading this book.'
Public Choice
Table of Contents
Preface;
1. Preliminaries;
2. The Nash bargaining
solution;
3. The Rubinstein model;
4. Risk of breakdown;
5. Outside options;
6. Inside options; 7.
Procedures;
8. Commitment tactics;
9. Asymmetric information;
10. Repeated bargaining
situations;
11. Envoi;
References
350 pages