Equity bargaining with common value

摘要

We study a common-value bilateral bargaining model with equity offer. In particular, we consider a model in which players bargain over an equity share of a common-value stochastic pie (i.i.d. over time) and players receive private signals on the size of the pie each period. Efficient agreement is a stochastic rule: Delay is efficient if the expected size of today's pie is small and the discount factor is high. Hence, information aggregation is crucial for efficiency. We derive the conditions under which an equilibrium that attains the efficient agreement exists. The key idea is that the proposer makes an offer in such a way that the responder will use her signal if the responder's signal is crucial for an efficient agreement.