Comments on: Why Patience Pays Off in Negotiations http://mindyourdecisions.com/blog/2008/07/15/why-patience-pays-off-in-negotiations/ Articles on game theory and personal finance Thu, 29 Jul 2010 12:43:59 -0500 hourly 1 http://wordpress.org/?v=3.0 By: Selling an extra ticket – a math bargaining puzzle - Mind Your Decisions http://mindyourdecisions.com/blog/2008/07/15/why-patience-pays-off-in-negotiations/comment-page-1/#comment-6504 Selling an extra ticket – a math bargaining puzzle - Mind Your Decisions Tue, 27 Apr 2010 17:30:28 +0000 http://mindyourdecisions.com/blog/2008/07/15/why-patience-pays-off-in-negotiations/#comment-6504 [...] (For a game theory model on this, where buyer and seller have different preferences, see this article about patience in negotiations) [...] [...] (For a game theory model on this, where buyer and seller have different preferences, see this article about patience in negotiations) [...]

]]> By: How to avoid the winner’s curse using game theory - Mind Your Decisions http://mindyourdecisions.com/blog/2008/07/15/why-patience-pays-off-in-negotiations/comment-page-1/#comment-6217 How to avoid the winner’s curse using game theory - Mind Your Decisions Tue, 12 Jan 2010 05:03:47 +0000 http://mindyourdecisions.com/blog/2008/07/15/why-patience-pays-off-in-negotiations/#comment-6217 [...] and game theory. I will not discuss the issue here but I will mention that in such situations patience can be a negotiating asset. [...] [...] and game theory. I will not discuss the issue here but I will mention that in such situations patience can be a negotiating asset. [...]

]]> By: Other Wise » Casual Nash http://mindyourdecisions.com/blog/2008/07/15/why-patience-pays-off-in-negotiations/comment-page-1/#comment-2480 Other Wise » Casual Nash Fri, 29 Aug 2008 01:46:42 +0000 http://mindyourdecisions.com/blog/2008/07/15/why-patience-pays-off-in-negotiations/#comment-2480 [...] Why Patience Pays Off in Negotiations [...] [...] Why Patience Pays Off in Negotiations [...]

]]> By: Presh Talwalkar http://mindyourdecisions.com/blog/2008/07/15/why-patience-pays-off-in-negotiations/comment-page-1/#comment-2378 Presh Talwalkar Fri, 22 Aug 2008 06:07:01 +0000 http://mindyourdecisions.com/blog/2008/07/15/why-patience-pays-off-in-negotiations/#comment-2378 <b><em>Rafa</b></em>: Yes, irrational folks do throw a wrench in the model. I enjoyed your explanation and how you tried to use the principle at work. But part of the fun is anticipating a rival's response, and life would be no fun if it were all predictable :) Rafa:
Yes, irrational folks do throw a wrench in the model. I enjoyed your explanation and how you tried to use the principle at work. But part of the fun is anticipating a rival’s response, and life would be no fun if it were all predictable :)

]]> By: Rafa http://mindyourdecisions.com/blog/2008/07/15/why-patience-pays-off-in-negotiations/comment-page-1/#comment-2361 Rafa Thu, 21 Aug 2008 17:07:16 +0000 http://mindyourdecisions.com/blog/2008/07/15/why-patience-pays-off-in-negotiations/#comment-2361 Great post, and excellent site Presh. One funny thing about Rubinstein's approach is that in regards to the neoclassical indetermination in labour markets when both sides have market power and are trying to reach an agreement on the wage levels (considered as the negotiation of an unitary surplus), given the fact that patience pays off and that agents have an incentive to reach an agreement as soon as possible (through backwards induction); strikes from trade-unions or any other kind of dead-locks are irrational responses! Of course, I've used this argument with my boss in order to get the pay-raise I so hardly deserve: he's acting irrationally since he will end up giving me a raise along the way. But to no avail so far... Damned irrational folks! ;) Great post, and excellent site Presh.

One funny thing about Rubinstein’s approach is that in regards to the neoclassical indetermination in labour markets when both sides have market power and are trying to reach an agreement on the wage levels (considered as the negotiation of an unitary surplus), given the fact that patience pays off and that agents have an incentive to reach an agreement as soon as possible (through backwards induction); strikes from trade-unions or any other kind of dead-locks are irrational responses!

Of course, I’ve used this argument with my boss in order to get the pay-raise I so hardly deserve: he’s acting irrationally since he will end up giving me a raise along the way. But to no avail so far…

Damned irrational folks! ;)

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