Efficient Strategic Bargaining

In strategic bargaining, decider feels inequality aversion in, fairness affects bargaining efficiency and distribution of bargaining outcomes in, but they all leaves tolerance open. It is difficult to explore bargaining outcomes when incorporating tolerance into bargaining structure. In this paper, we consider decider withholding cooperation from proposer even if the proposer mistreated the decider, and explore the proposer´s force and the decider´s deciding power. For self-interested and tolerably fair motivated preferences, we present some results predictable in a perspective of classical game theory. In particular, full efficiency is characterized. Since our bargaining structure incorporates tolerance, this paper extends.