Paying the expected externality for a price quote achieves bargaining efficiency

Kaylan Chatterjee; John W. Pratt; Richard J. Zeckhauser

doi:10.1016/0165-1765(78)90003-4

Paying the expected externality for a price quote achieves bargaining efficiency

Kaylan Chatterjee
, John W. Pratt
, Richard J. Zeckhauser

Economics

Research output: Contribution to journal › Article › peer-review

6 Scopus citations

Abstract

A seller and buyer have reservation prices x and y. Each has a subjective distribution on the other's reservation price. Paying an offer or the expected benefit the other participant receives from his offer induces honest price quotations, hence efficiency: sale iff y > x.

Original language	English (US)
Pages (from-to)	311-313
Number of pages	3
Journal	Economics Letters
Volume	1
Issue number	4
DOIs	https://doi.org/10.1016/0165-1765(78)90003-4
State	Published - 1978

All Science Journal Classification (ASJC) codes

Finance
Economics and Econometrics

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10.1016/0165-1765(78)90003-4

Cite this

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title = "Paying the expected externality for a price quote achieves bargaining efficiency",

abstract = "A seller and buyer have reservation prices x and y. Each has a subjective distribution on the other's reservation price. Paying an offer or the expected benefit the other participant receives from his offer induces honest price quotations, hence efficiency: sale iff y > x.",

author = "Kaylan Chatterjee and Pratt, \{John W.\} and Zeckhauser, \{Richard J.\}",

year = "1978",

doi = "10.1016/0165-1765(78)90003-4",

language = "English (US)",

volume = "1",

pages = "311--313",

journal = "Economics Letters",

issn = "0165-1765",

publisher = "Elsevier B.V.",

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AU - Chatterjee, Kaylan

AU - Pratt, John W.

AU - Zeckhauser, Richard J.

PY - 1978

Y1 - 1978

N2 - A seller and buyer have reservation prices x and y. Each has a subjective distribution on the other's reservation price. Paying an offer or the expected benefit the other participant receives from his offer induces honest price quotations, hence efficiency: sale iff y > x.

AB - A seller and buyer have reservation prices x and y. Each has a subjective distribution on the other's reservation price. Paying an offer or the expected benefit the other participant receives from his offer induces honest price quotations, hence efficiency: sale iff y > x.

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UR - https://www.scopus.com/pages/publications/27144494487#tab=citedBy

U2 - 10.1016/0165-1765(78)90003-4

DO - 10.1016/0165-1765(78)90003-4

M3 - Article

AN - SCOPUS:27144494487

SN - 0165-1765

VL - 1

SP - 311

EP - 313

JO - Economics Letters

JF - Economics Letters

IS - 4

ER -

Paying the expected externality for a price quote achieves bargaining efficiency

Abstract

All Science Journal Classification (ASJC) codes

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