A Sentence About the "Government Shutdown"  

Posted by Wayne Bretski

"When the threat to opt out is empty for both agents, the outcome corresponds exactly with the (generalized) Nash bargaining solution." - from the abstract of Randolph Sloof's Finite Horizon Bargaining... paper from 2002 (direct PDF link).

We've got some Hollow Threats in the news, this time from the US gov't. Ho hum, right, except Miss Bee and I wouldn't get paid. "Government shutdown" sounds so...I don't know...Windows '95.

The preceding sentences look like this:
Typically the delay threat determines proposals in early periods, while the threat to opt out characterizes those in later ones. Owing to this nonstationarity both threats may appear in the equilibrium shares agreed upon.
Oh, they're going to make on a deal on the budget. Ok. The delay threat has diminished. Reps and Dems can't opt out. I would have put a comma between "nonstationarity" and "both", but otherwise the model holds.

*fingers in ears*

Moving to Mexico, la la la la...

Tip of the hat to T.C.

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