To reveal or not to reveal? Strategic disclosure of private information in negotiation

摘要: Abstract Within the bargaining literature, it is widely held that negotiators should never reveal information will lead to disclosure of their reservation prices. We analyze a simple and search model in which informed buyer can choose his cost searching for an outside price (which determines price) uninformed seller. demonstrate buyers be made better off by revealing cost. More interestingly, we also find that, depending on assumed distribution costs, sometimes with relatively low costs private whereas other cases high do so. then test our experimentally subjects’ behavior not entirely consistent theoretical predictions. In general, bargainers’ explained bounded rationality similar “fictitious play”.