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Multi-issue Bargaining with Endogenous Agenda

Abstract The first part of this paper shows that in a noncooperative bargaining model with alternating offers and time preferences the timing of issues (the agenda) matters even if players become arbitrarily patient. This result raises the question of which agenda should come up endogenously when agents bargain over a set of unrelated issues. It is found that simultaneous bargaining over “packages” should be a prevailing phenomenon, but we also point to the possibility of multiple equilibria involving even considerable delay. Journal of Economic Literature Classification Number: C78.