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Synopsis

Seminar paper from the year 2003 in the subject Economics - Macro-economics, general, grade: 1,4, London School of Economics, 22 entries in the bibliography, language: English, abstract: Behavioural evidence of negotiations with incomplete information under time pressure and the underlying normative bargaining models are the core topics of this essay. First, the most important game-theoretical approaches to bargaining settings of the last decades are discussed: Nash's axiomatic approach, Rubinstein's sequential model and negotiation models with incomplete information. Building on this normative ideals, the second section focuses on empirical approaches to test negotiators' behaviour under incomplete information and time pressure. Third, a further research path to negotiations with incomplete information under time pressure is developed. In the Appendix the ultimatum game is solved by a Bayesian-Nash approach.

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