Optimally stubborn. How long to hold and who will fold?

Key Points

• This research aims to understand the dynamics of bargaining between stubborn and rational players and the effects of their demands on negotiation outcomes.
• Developed a model analyzing two types of players: rational and stubborn.
• Examined two stages of the game: demand stage and concession stage.
• Assessed how the probability of facing a stubborn player influences equilibrium outcomes.
• When facing a low probability of a stubborn player, any feasible payoff can be negotiated for both types.
• High probability scenarios result in either immediate agreement or prolonged negotiation delays.