Rubinstein Bargaining Model

The Rubinstein bargaining model is a framework for understanding how two parties negotiate over splitting a resource or making a decision. It assumes that each party takes turns proposing offers, and they can either accept an offer or reject it, leading to another round of proposals. The model incorporates the concept of time, where each party values immediate gains more than future ones, influencing their negotiation strategies. This creates a balance between reaching an agreement quickly and maximizing their share. Ultimately, it helps explain how negotiation dynamics and patience can affect the outcomes of bargaining situations.