Economics
Bjørn-Atle Reme, Lars Sørgard
Sequential Negotiations: Substitutes versus Complements
Volume 172 (2016) / Issue 4, pp. 639-644 (6)
This paper analyzes a sequential negotiation game where a retailer and its two suppliers negotiate over the sharing of their jointly created surplus. We show that the suppliers each prefer to negotiate first (second) if the suppliers are substitutes (complements) in producing joint surplus, while the retailer is indifferent to the order of negotiations.