The Role of External Search in Bilateral Bargaining, Operations Research
We consider two person bargaining problem when players can search for possible alternatives to each other's offers. The interlaced phases of bargaining and search over time are modeled as an extensive form non-cooperative game. The subgame perfect equilibrium outcome is characterized. The player with superior search ability is shown to gain a more favorable outcome and greater bargaining strength.
Shirish D Chikte, Sudhakar D. Deshmukh
Chikte, D Shirish, and Sudhakar D. Deshmukh. 1987. The Role of External Search in Bilateral Bargaining. Operations Research. 35(2): 198-205.