They switch to negotiating for allocation. But yeah, it’s weird because there’s no basis for negotiation once both parties have committed to playing on the Pareto frontier.
I feel like in practice, negotiation consists of provisional commitments, with the understanding that both parties will retreat to their BATNA if negotiations break down.
Maybe one can model negotiation as a continuous process that approaches the Pareto frontier, with the allocation changing along the way.
They switch to negotiating for allocation. But yeah, it’s weird because there’s no basis for negotiation once both parties have committed to playing on the Pareto frontier.
I feel like in practice, negotiation consists of provisional commitments, with the understanding that both parties will retreat to their BATNA if negotiations break down.
Maybe one can model negotiation as a continuous process that approaches the Pareto frontier, with the allocation changing along the way.