NCJ Number
104500
Date Published
1985
Length
45 pages
Annotation
The use of game theory in studies of the types of bargaining problems arising during negotiation and arbitration can improve the understanding of the role of private information and the nature of strategies used in competitive environments.
Abstract
Studies using this approach also provide a formal structure for the investigation of issues involving efficiency and equity. In addition, they show the roles played by intervenors in disputes and the limitations that these intervenors must acknowledge. Game theory involves either quantitative or qualitative models that embody the principles involved in interactions. The studies of bargaining distinguish between situations in which both parties are informed about possible outcomes and one another's preferences regarding those outcomes. They also distinguish between analysis of the mechanics of negotiation and analysis of the types of agreements that could be reached through some set of mechanics. Game theory shows that negotiators who hold private information must consider the actions they would have taken if their information had been different. Intervenors must provide opportunities for safe revelations of information and must be aware that some incentives may leave the parties in an irreconcilable position of conflict. Case examples of bargaining situations, figures, and 25 references.