This is a class on the origins of bargaining power. For example, if you are willing to work for at least $20 per hour and your boss is willing to pay you up to $50 per hour, what determines whether your wage is closer to $20 or $50? This course is a technical introduction to who gets how much and why and what you can do to change that.
- Introduction and Game Plan
What is bargaining power and why should you care?
- The Ultimatum Game
We need a baseline model to study, and the ultimatum game is it.
- Rubinstein Bargaining
The ultimatum game only permitted a single offer. This section builds up to an unlimited stream of offers and counteroffers Rubinstein bargaining.
- Gaining Bargaining Power
How can parties increase their share of the benefits from bargaining?
None, although game theory will be useful.
This class will have five sections:
1) Introduction and Game Plan
2) The Ultimatum Game
3) Rubinstein Bargaining
4) Increasing Bargaining Power
5) Why Bargaining Fails
Two or three new lectures will appear each week until the course is finished.
The course largely follows the technical portions of the book Game Theory 101: Bargaining: http://www.amazon.com/dp/1503016978/
You can find the YouTube mirror here: https://www.youtube.com/playlist?list=PLKI1hnAkaQq44yiYz5eNByopcDU-G
I am a PhD candidate at the University of Rochester and author of Game Theory 101: Bargaining