Bargaining over a common conceptual space
Working paper
Issue number:
2014.52
Series:
CES Working Papers
Publisher:
Centre d’Economie de la Sorbonne
Year:
2014
Two agents endowed with di erent individual conceptual spaces are engaged in a
dialectic process to reach a common understanding. We model the process as a simple noncooperative
game and demonstrate three results. When the initial disagreement is focused,
the bargaining process has a zero-sum structure. When the disagreement is widespread, the
zero-sum structure disappears and the unique equilibrium requires a retraction of consensus:
two agents who individually agree to associate a region with the same concept end up
rebranding it as a di erent concept. Finally, we document a conversers' dilemma: this last
equilibrium outcome is Pareto-dominated by a cooperative solution that avoids retraction.