Personal power dynamics in bargaining

Abstract

We study bargaining between a fixed agenda-setter and responder over successive issues. If the responder rejects the setter's proposal, the setter can attempt to assert her will to implement her ideal and will succeed with a probability that depends on her "personal power". Players learn about the setter's power as gridlock persists. Gridlock occurs when the setter's perceived power is either too high or too low, and the players reach compromise when the setter has moderate personal power. The presence of "difficult" issues can induce more compromise as the players have incentives to avoid testing the setter's power.(c) 2022 Elsevier Inc. All rights reserved.