bargaining models

Bargaining models are frameworks used to understand how two or more parties negotiate to reach an agreement. These models analyze the dynamics of offers, counteroffers, and concessions, highlighting factors like power dynamics, information asymmetry, and the preferences of each party. In essence, they help explain how negotiations play out in various contexts, from business deals to labor contracts. By studying these models, we can better grasp the strategies involved in achieving mutually beneficial outcomes, the role of patience and timing, and how the negotiation environment influences the final agreement.