Reputation Effects Under Interdependent Values

Bargaining with Interdependent Values

A seller and a buyer bargain over the terms of trade for an object. The seller receives a perfect signal determining the value of the object to both players, while the buyer remains uninformed. We analyze the infinite horizon bargaining game in which the buyer makes all the offers. When the static incentive constraints permit first-best efficiency, then under some regularity conditions the outc...

Bargaining with Interdependent Values, Experience Effects and the Coase Conjecture

We study dynamic bargaining with asymmetric information and interdependent values. We show that as the gap between the cost and value of the weakest type shrinks to zero, the continuous time limit of equilibria changes dramatically from rare bursts of trade with long periods of inactivity to a smooth screening down the demand function, independent of the distribution. If we interpret the model ...

Efficient assignment with interdependent values

We study the “house allocation” problem in which n agents are assigned n objects, one for each agent, when the agents have interdependent values. We show that there exists no mechanism that is Pareto efficient and ex post incentive compatible, and the only mechanism that is group ex post incentive compatible is constant across states. By contrast, we demonstrate that a Pareto efficient and Baye...

Two-sided matching with interdependent values

We introduce and study two-sided matching with incomplete information and interdependent valuations on one side of the market. An example of such a setting is a matching market between colleges and students in which colleges receive partially informative signals about students. Stability in such markets depends on the amount of information about matchings available to colleges. When colleges ob...

Implementation with Interdependent Values∗ PRELIMINARY AND INCOMPLETE