Opacity in Bargaining over Public Good Provision

Publikation: Beitrag in FachzeitschriftForschungsartikelBeigetragenBegutachtung

Abstract

We consider ultimatum bargaining over the provision of a public good. Offer-maker and responder can delegate their decisions to agents whose actual decision rules are opaque. We show that the responder will benefit from strategic opacity, even with bilateral delegation. The incomplete information created by strategic opacity choices does not lead to inefficient negotiation failure in equilibrium. Inefficiencies arise from an inefficient provision level. While an agreement will always be reached, the public good provision will fall short of the socially desirable level. Compared with unilateral delegation, bilateral delegation is never worse from a welfare perspective.

Details

OriginalspracheEnglisch
Seiten (von - bis)1069-1095
Seitenumfang27
Fachzeitschrift Journal of public economic theory
Jahrgang25
Ausgabenummer5
PublikationsstatusVeröffentlicht - Okt. 2023
Peer-Review-StatusJa

Externe IDs

Scopus 85153403532
ORCID /0000-0002-5071-7849/work/142250542
WOS 000970230500001

Schlagworte

Forschungsprofillinien der TU Dresden

DFG-Fachsystematik nach Fachkollegium

Schlagwörter

  • bargaining, delegation, incomplete information, opacity, public good provision, transparency, Transparency, Bargaining, Opacity, Incomplete information, Public good provision, Delegation

Bibliotheksschlagworte