Ariel Rubinstein was kind enough to alert me that when I say that the only interesting sorts of discounting in bargaining games are a constant discount rate per period and a constant bargaining cost per period, I am missing an important case---that of concave utility. So I 've revised my entry notes on Rubinstein (1982) for Readings in Games and Information (May 2001). Professor Rubinstein hasn't seen my revision yet, but I hope I've got the idea of what we talked about by phone.

[permalink, http://php.indiana.edu/~erasmuse/w/03.10.30d.htm ]

To return to Eric Rasmusen's weblog, click http://php.indiana.edu/~erasmuse/w/0.rasmusen.htm.