A sequential bargaining protocol for land rental arrangements

Alfredo Valencia-Toledo, Juan Vidal-Puga

Research output: Contribution to journalArticlepeer-review


We consider land rental between a single tenant and several lessors. The tenant should negotiate sequentially with each lessor for the available land. In each stage, we apply the Nash bargaining solution, as a short-cut to solving non-cooperative bargaining games. Our results imply that, when all land is necessary, a uniform price per unit is more favorable for the tenant than a lessor-dependent price. Furthermore, a lessor is better off with a lessor-dependent price only when negotiating first. For the tenant, lessors’ merging is relevant with lessor-dependent price but not with uniform price.

Original languageEnglish
Pages (from-to)65-99
Number of pages35
JournalReview of Economic Design
Issue number1-2
StatePublished - 1 Jun 2020
Externally publishedYes

Bibliographical note

Publisher Copyright:
© 2020, Springer-Verlag GmbH Germany, part of Springer Nature.


  • Bargaining
  • Land rental
  • Nash solution
  • Non-cooperative game


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