## Bargaining in a long-term relationship and the Rubinstein solution |

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accepts Additionally assumes assumption availability of future bargaining behavior implies bargaining equilibrium bargaining is restricted bargaining result bargaining with one-period bargaining with unlimited condition of rational consecutive offers corner solutions current bargaining define delay in bargaining demonstrates determined discounted sum discounted utility division of bargaining dynamic path employed exponential function falls short first-mover advantages future bargaining future contracts future partitions future pies future realizations gains of agent gives Hence holds identical discount factors indifferent between realizing interior solution Kiel limx long-term relationship marginal utility minimum bargaining gains non-stationary equilibria one-period offers payoff of agent perfect information Proposition rational bargaining behavior relevant repeated bargaining game repeated games Shaked and Sutton specifies split of bargaining splitting a pie strategic bargaining models subagreement subgame-perfect equilibrium sufficiently small sum term Taylor expansion theorem threat of delay time-consistent bargaining behavior total bargaining gains unlimited offers utility functions utility of agent utility transfer whole pie