foreign direct investment regime type and labor protest in developing countries we explore the relationship between fdi regime type and strikes in low and middle income countries we argue that fdi produces social tensions and opportunities for protest that can result in higher levels of industrial conflict however the effect of fdi is moderated by regime type while democracies tend to have higher levels of protest overall they are better able than authoritarian regimes to cope with the strains arising from fdi we cite two reasons first political competition forces regimes to incorporate workers which shifts conflict from industrial relations to the political arena second democracies provide workers with freedom of association rights which facilitate institutionalized grievance resolution we test the argument using a new dataset of labor protest in low and middle income countries for the period 1980 2005

commodity price shocks and civil conflict evidence from colombia how do income shocks aect armed con ict theory suggests two op posite eects if labor is used to appropriate resources violently higher wages may lower con ict by reducing labor supplied to appropriation this is the opportunity cost eect alternatively a rise in contestable income may increase violence by raising gains from appropriation this is the rapacity eect our paper exploits exogenous price shocks in inter national commodity markets and a rich dataset on civil war in colombia to assess how dierent income shocks aect con ict we examine changes in the price of agricultural goods which are labor intensive and natural resources which are capital intensive we focus on coee and oil the two largest exports we nd that a sharp fall in coee prices in the 1990s increased violence dierentially in regions growing more coee by lower ing wages and the opportunity cost of joining armed groups in contrast a rise in oil prices increased violence dierentially in the oil region by in creasing municipal revenue siphoned through rapacity this pattern holds in several other agricultural and natural resource sectors providing robust evidence that price shocks aect con ict in opposite directions depending on the factor intensity of the commodity

physician induced demand for surgery following up the earlier findings by fuchs on surgeon induced demand this paper makes numerous data and econometric improvements in conducting a test of neoclassical and inducement theories a simultaneous equation model is used to estimate physician demand and equilibrium fees for surgery from a sample of 350 psus over the 1969 76 period the results provide definite support for the notion of competitive market failure particularly in large metropolitan areas other things equal fees and utilization are higher in surgeon rich areas although our estimated shift elasticities were only about one third those found by fuchs a statistically significant albeit small price elasticity of demand for surgery was also obtained in contrast to fuchs increasing monopoly and disequilibrium models are also tested without altering the basic findings where surgeons were in short supply their availability significantly affected surgery rates although a small supply effect was found in plentiful areas as well

proposal for a national inventory adjustment for trade in the presence of border carbon adjustment assessing carbon tax policy in japan abstract in this paper we pointed out a hidden inequality in accounting for trade related emissions in the presence of border carbon adjustment under a domestic carbon pricing policy producers pay for the carbon costs in exchange for the right to emit under border carbon adjustment however the exporting country pays for the carbon costs of their exports to the importing country but not be given any emission credits as a result export related emissions will be remained in the national inventory of the exporting country based on the unfccc inventory approach this hidden inequality is important to climate policy but has not yet been pointed out to address this issue we propose a method of national inventory adjustment for trade by which export related emissions will be deducted from the national inventory of the exporting country and added to the national inventory of the importing country which implements border carbon adjustment to assess the policy impacts we simulated a carbon tax policy with border tax adjustment for japan using a multi region computable general equilibrium model the results indicate that with the national inventory adjustment for trade both japan s national inventory and the carbon leakage effects of japan s climate policy will be greatly different

the disparity between willingness to accept and willingness to pay measures of value psychologists have long argued that people are much more averse to a loss than attracted to an equivalent gain this behavior termed loss aversion has been formalized by kahneman and tversky 1979 in their reformulation of expected utility theory prospect theory in prospect theory the utility function is replaced by a value function that evaluates changes in income from the current level increases in income are weighted by a relatively small marginal utility decreases in income are weighted by a much larger marginal utility in effect the value function implies that a kink in the relationship between utility and income occurs at the initial income or reference point and that the slope of the utility function for losses in income is steeper than it is for gains in a recent paper knetsch and sinden 1984 report a series of experiments that demonstrate the existence of a large disparity between willingness to accept wta and willingness to pay wtp measures of value they argue that the psychological theory of loss aversion explains this difference economic theory would suggest that individuals who exhibit a large disparity between wta and wtp are perhaps underperceiving the value of gains or overperceiving the value of losses are behaving in an irrational manner and will consequently achieve a lower level of well being than if they behaved in a true utility maximizing manner this would in contrast to loss aversion usually imply near equal values for wta and wtp see willig 1976 further documentation of a larger than expected disparity between wta and wtp has been obtained in surveys asking for the value of a variety of public goods for example cummings brookshire and schulze 1986 document six

approximating infinite horizon models in a complementarity format a primer in dynamic general equilibrium analysis abstract we demonstrate the advantages of the complementarity formulation for approximating infinite horizon equilibria in neoclassical growth models as compared with techniques originally developed for optimal planning models the complementarity approach does not require an ex ante specification of the growth rate in the terminal period and is therefore suitable for models with endogenous growth or short time horizons we also consider approximation issues in models with multiple infinitely lived agents changes in net indebtedness over a finite period are estimated as part of the model to obtain a precise approximation of the infinite horizon equilibria with a small number of time periods

fiscal consolidation and climate policy an overlapping generations perspective abstract this paper examines the distributional and efficiency impacts of public debt consolidation financed through a carbon tax employing a dynamic general equilibrium model with overlapping generations of the u s economy the numerical model features government taxes and spending and a multi sectoral production structure including intermediate production specific detail on the energy sector both in terms of primary energy carriers and energy intensive industries and sector and fuel specific carbon inputs in contrast to revenue neutral carbon tax swaps using the carbon revenue for deficit reduction implies a relaxation of future public budgets as debt repayment results in lower future interest obligations while intergenerational welfare impacts depend importantly on what tax recycling instrument is used we find that combining public debt consolidation with a carbon policy entails the possibility of sustained welfare gains for future generations if social discount rates are sufficiently low or if social preferences exhibit a large aversion with respect to intergenerational inequality combining fiscal consolidation and climate policy may offer the chance for societal gains even without considering potential benefits from averted climate change

a constant quality price index for resale public housing flats in singapore largely because of the significant societal and economic aspects of public housing in singapore the current resale price index is published regularly by the housing and development board hdb based on average transaction prices this hdb index does not control for a shift in the mix of public housing resale flats transacted this paper looks into the usefulness of the current hdb resale price index that is reflective of pure price appreciation across time adopting the varying parameter technique a constant quality hdb resale price index is constructed instead for the period between january 1997 and june 2000 the usefulness of a constant quality resale price index is evaluated using three assessment criteria first through a series of comparative studies between a constant quality hdb resale price index and other resale price indices it is found that the constant quality resale price index provides a better indication of pure price appreciation secondly the parameters of price determinants are fo

is strike behavior cyclical we examine cyclicality of strike frequency and incidence using canadian data on strikes and contracts total strike frequency exhibits significant procyclicality to which within contract strikes contribute appreciably evidence is weaker for procyclical behavior of contract expiry strikes both in total and disaggregated by issue strike incidence is also procyclical particularly in manufacturing though the procyclicality here is confined to strikes over nonwage issues these results mirror those obtained by analyzing the frequency of strikes in the contract data industry specific cyclical variables positively affect strike incidence in manufacturing but region specific variables have no effect

do professional traders exhibit myopic loss aversion an experimental analysis two behavioral concepts loss aversion and mental accounting have been combined to provide a theoretical explanation of the equity premium puzzle recent experimental evidence supports the theory as students behavior has been found to be consistent with myopic loss aversion mla yet much like certain anomalies in the realm of riskless decision making these behavioral tendencies may be attenuated among professionals using traders recruited from the cbot we do indeed find behavioral differences between professionals and students but rather than discovering that the anomaly is muted we find that traders exhibit behavior consistent with mla to a greater extent than students

price premium variations as a consequence of buyers lack of information it appears that buyers sometimes knowingly pay a price that is higher than that justified by the relative quality of the product such a price premium is argued to be an economically rational attempt by quality conscious buyers to ensure that the seller does not provide a lower than promised level of quality for experience products conversely for search products price premiums are argued to be the consequence of lack of search by buyers who are less quality conscious results from a survey conducted in an organizational buying setting indicate that buyers tendency to pay a price premium for experience products increases with an increase in their quality consciousness while for search products this tendency decreases with an increase in their quality consciousness the implications of this finding are discussed further analysis leads to additional speculation regarding some other mechanisms that buyers may use to assure product quality

this mine is mine how minerals fuel conflicts in africa we combine georeferenced data on mining extraction of 14 minerals with information on conflict events at spatial resolution of 0 5 degree x 0 5 degree for all of africa between 1997 and 2010 exploiting exogenous variations in world prices we find a positive impact of mining on conflict at the local level quantitatively our estimates suggest that the historical rise in mineral prices commodity super cycle might explain up to one fourth of the average level of violence across african countries over the period we then document how a fighting group s control of a mining area contributes to escalation from local to global violence finally we analyze the impact of corporate practices and transparency initiatives in the mining industry

deep transformations of the energy sector a model of technology investment choice abstract economy energy equilibrium models have emerged as a dominant tool to investigate future pathways taking into account technological aspects economic behavior markets and policy a challenge for any model is to represent situations which involve large departures from a benchmark mix of energy technologies which would be associated with deep transformations of the energy sector e g energy mix with a high penetration of renewables or near complete decarbonization this paper proposes a model which differentiates technologies at the level of investments and which is capable of representing large shifts in the market shares of competing technologies that produce a homogeneous energy good e g electricity we compare the partial equilibrium properties of the proposed technology investment choice model with the standard approach for modeling technology competition based on product differentiation we also embed both approaches in a numerical general equilibrium multi sector ramsey growth framework we find that the technology investment choice model overcomes some important limitations of the standard approach and is more suited to accommodate large changes in market shares of energy technologies in response to highly stringent energy and climate policy

competitive price and quality under asymmetric information we present an analysis of equilibrium in markets with asymmetrically informed consumers some consumers know both price and quality of all sellers whereas others know neither but may search among sellers the equilibrium correlation between price and quality generally increases with the level of information in the market and can be negative when this level is sufficiently small a meta analysis of the available empirical studies strongly supports the model s predictions

international commodity prices growth and the outbreak of civil war in sub saharan africa to learn more about the effect of economic conditions on civil war we examine whether sub saharan civil wars are more likely to start following downturns in the international price of countries main export commodities the data show a robust effect of commodity price downturns on the outbreak of civil wars we also find that sub saharan countries are more likely to see civil wars following economic downturns in their main oecd export destinations

foreign investors influence on the real estate market capitalization rate evidence from a small open economy abstractthis article adds to the scarce literature on the influence of international investment flows on local real estate values we hypothesize that a greater foreign investor presence in a real estate market results in a lower capitalization rate and examine whether this holds true in the helsinki cbd office market in finland this market provides an interesting case study by being part of a small open economy in which the presence of foreign investors has substantially varied over time the dynamic ols estimations using data for the period 1990 2015 provide support for the hypothesis the baseline results show a highly statistically significant negative impact of foreign investor participation on the capitalization rate the point estimates indicating that a 10 point growth in the share of foreign buyers of the total transaction volume decreases the cap rate by approximately 30 basis points

do bad bidders become good targets this paper empirically examines one motive for takeovers to change control of firms that make acquisitions that diminish the value of their equity firms that subsequently become takeover targets make acquisitions that significantly reduce their equity value and firms that do not become takeover targets make acquisitions that raise their equity value within the sample of acquisition by targets the acquisitions that reduce equity value the most are those that are later divested either in bust up takeovers or restructuring programs to thwart the takeover this evidence is consistent with theories advanced by marris manne and jensen concerning the disciplinary role played by takeovers

price and quantity in international comparisons of health care expenditure an important omission from earlier cross national comparisons of health care expenditure has been the failure to distinguish between price and quantity using recent data on purchasing power parities the purpose of this article is to report some preliminary results regarding health care expenditure and quantity across 22 oecd countries the article concludes that contrary to what has been suggested in some recent articles the relative price of health care is not correlated to the aggregate per capita income the fraction of the national income that is devoted to health care provision increases with the per capita income regardless of whether health care is measured in terms of expenditure or quantity the relative price of health care has a rationing effect on the quantity of health care that is offered with a price alasticity close to minus one the latter finding means that the health care expenditure is not greater in countries with higherprices furthermore the differences in health care expendit

do anomalies disappear in repeated markets there is some evidence that as individuals participate in repeated markets anomalies tend to disappear one interpretation is that individuals particularly marginal traders are learning to act on underlying preferences which satisfy standard assumptions an alternative interpretation the shaping hypothesis is that individuals preferences are adjusting in response to cues given by market prices the paper reports an experiment designed to discriminate between these hypotheses with particular reference to the disparity between willingness to pay and willingness to accept

medical care costs how much welfare loss hardly a week goes by without a front page newspaper article on rising health care costs and the uninsured in this article i focus mainly on costs arguing that the issue has been somewhat misconceived while the level of medical care spending in the u s is a cause for concern the welfare losses associated with rises in that level of spending may not be as large as the public rhetoric can make them seem in fact cost containment may not be as urgent as is widely supposed and some proposed cost containment policies may result in welfare losses for the insured and even increase the number of uninsured

evaluating long term care policy options taking the family seriously we propose a dynamic non cooperative framework for long term care ltc decisions of families and use it to evaluate ltc policy options for the u s we first document the importance of informal caregiving and economic determinants of care arrangements we then build a heterogeneous agents model with imperfectly altruistic overlapping generations to account for the patterns we find a key innovation is the availability of informal care ic which is determined through intra family bargaining this opens up a new margin in response to policy and allows for informal insurance through home production of care our calibrated model captures the observed care arrangements well we study the implications of non means tested ic and formal care fc subsidies as well as changes to means tested medicaid we find that ic responds strongly to these policies an ic subsidy substantially reduces reliance on medicaid while the reduction of tax revenues due to lower labour supply by caregivers is modest there are large welfare gains from a combination of ic and fc subsidies even when combined with a reduction of the medicaid program

buyer exuberance and price premium it has been demonstrated that the real estate market disciplines irrational price premiums however the persistence of price premiums begs the question of what causes price premiums in the first place this paper seeks to examine two explanations for price premiums the conventional information asymmetry explanation and the buyer exuberance explanation as motivated by behavioural studies the results show that information asymmetry explains price premiums and this finding is robust across two sub hypotheses tested namely information differences arising from market familiarity and product characteristics in addition we find that price premiums are also caused by buyer exuberance specifically exuberance arising from representativeness purchasing power and anchoring effects

exchanging goods and damages the role of trade on the distribution of climate change costs the impacts of climate change vary significantly across world regions whereas tropical and subtropical regions are expected to suffer severely from the effects of climate change the impacts in northern latitudes should remain relatively moderate however regions are not self sufficient and the costs of climate change can spread across regions through international trade i study the international spillover of climate impacts within a regionalised climate sensitive dynamic computable general equilibrium model of the world economy using data from a global climate model shows that the world regions face welfare losses between 0 6 and 2 1 due to climate change i also show that climate change affects terms of trade and sectoral competitiveness by means of a decomposition method the extent of spillover impacts through international trade can be identified spillover impacts significantly affect either positively or negatively the total costs of climate change for a region for regions with low exposure to climate change and high adaptive capacities spillover effects are responsible for a 1 6 of the total cost of climate change

health insurance and the demand for medical care evidence from a randomized experiment we estimate how cost sharing the portion of the bill the patient pays affects the demand for medical services the data come from a randomized experiment a catastrophic insurance plan reduces expenditures 31 percent relative to zero out of pocket price the price elasticity is approximately 0 2 we reject the hypothesis that less favorable coverage of outpatient services increases total expenditure for example by deterring preventive care or inducing hospitalization

combining bottom up and top down abstract we motivate the formulation of market equilibrium as a mixed complementarity problem which explicitly represents weak inequalities and complementarity between decision variables and equilibrium conditions the complementarity format permits an energy economy model to combine technological detail of a bottom up energy system with a second best characterization of the over all economy our primary objective is pedagogic we first lay out the complementarity features of economic equilibrium and demonstrate how we can integrate bottom up activity analysis into a top down representation of the broader economy we then provide a stylized numerical example of an integrated model within both static and dynamic settings finally we present illustrative applications to three themes figuring prominently on the energy policy agenda of many industrialized countries nuclear phase out green quotas and environmental tax reforms

concession stands how mining investments incite protest in africa foreign investment in africa s mineral resources has increased dramatically this paper addresses three questions raised by this trend do commercial mining investments increase the likelihood of social or armed conflict if so when are these disputes most prevalent and finally what mechanisms help explain these conflicts i show first that mining has contrasting effects on social and armed conflict while the probability of protests or riots increases roughly doubling after mining starts there is no increase in rebel activity second i show that the probability of social conflict rises with plausibly exogenous increases in world commodity prices finally i compile additional geo spatial and survey data to explore potential mechanisms including reporting bias environmental harm in migration inequality and governance finding little evidence consistent with these accounts i develop an explanation related to incomplete information a common cause of conflict in industrial and international relations this mechanism rationalizes why mining induces protest why these conflicts are exacerbated by rising prices and why transparency dampens the relationship between prices and protest

performing housing markets this paper offers an interpretation of how housing markets work which complements more traditional economic approaches building on a wider movement within cultural economy and economic sociology it considers how housing markets are variously performed in the power filled negotiations of buyers sellers and market professionals this is part of a larger undertaking but here the focus is particularly on the role of legal financial and information intermediaries in shaping local cultures of property exchange this is a social rather than economic analysis of housing markets it is a qualitative rather than a quantitative study it is designed to shed light on how markets are made though it might in the end change the way they are modelled

projecting long term medical spending growth we present a dynamic general equilibrium model of the u s economy and the medical sector in which the adoption of new medical treatments is endogenous and the demand for medical services is conditional on the state of technology we use this model to prepare 75 year medical spending forecasts and a projection of the medicare actuarial balance and we compare our results to those obtained from a method that has been used by government actuaries our baseline forecast predicts slower health spending growth in the long run and a lower medicare actuarial deficit relative to the previous projection methodology

neoclassical theory versus prospect theory evidence from the marketplace several experimental studies have provided evidence that suggest indifference curves have a kink around the current endowment level these results which clearly contradict closely held economic doctrines have led some influential commentators to call for an entirely new economic paradigm to displace conventional neoclassical theory e g prospect theory which invokes psychological effects this paper pits neoclassical theory against prospect theory by investigating data drawn from more than 375 subjects actively participating in a well functioning marketplace the pattern of results suggests that prospect theory adequately organizes behavior among inexperienced consumers but consumers with intense market experience behave largely in accordance with neoclassical predictions moreover the data are consistent with the notion that consumers learn to overcome the endowment effect in situations beyond specific problems they have previously encountered this transference of behavior across domains has important implications in both a positive and normative sense

rationalist explanations for war realist and other scholars commonly hold that rationally led states can and sometimes do fight when no peaceful bargains exist that both would prefer to war against this view i show that under very broad conditions there will exist negotiated settlements that genuinely rational states would mutually prefer to a risky and costly fight popular rationalist and realist explanations for war fail either to address or to explain adequately what would prevent leaders from locating a less costly bargain essentially just two mechanisms can resolve this puzzle on strictly rationalist terms the first turns on the fact that states have both private information about capabilities and resolve and the incentive to misrepresent it the second turns on the fact that in specific strategic contexts states may be unable credibly to commit to uphold a mutually preferable bargain historical examples suggest that both mechanisms are empirically plausible

on the effect of income and relative price on demand for health care ec evidence this paper demonstrates that the relative price of health care could be used to explain the conflicting results of the empirical studies which attempt to measure the income elasticity of demand our empirical results based on a conventional model and cross national data set for the ec show that whereas health care may be labelled as a luxury good the large income effect can be interpreted as merely offsetting the price effect

models as usual for unusual risks on the value of catastrophic climate change we study the role of alternative intertemporal preference representations in a model of economic growth stock pollutant and endogenous risk of catastrophic collapse we contrast the traditional discounted utility model which assumes risk neutrality with respect to intertemporal utility with a multiplicative choice model that displays risk aversion in that dimension first we show that both representations of preferences can rationalize the same business as usual economy for a given interest rate and no pollution externality second once we introduce a collapse risk whose hazard rate is a function of the pollution stock multiplicative preferences recommend a much more stringent policy response an illustration in the context of climate change indicates that switching to the multiplicative preference representation has a similar effect in terms of policy recommendations as scaling up the schedule of the hazard rate by a factor of 100

decomposing the integrated assessment of climate change abstract we present a decomposition approach for integrated assessment modeling of climate policy based on a linear approximation of the climate system in our formulation the economic and natural science components are processed independently on different time scales turnpike properties of the ramsey growth model can be exploited to provide a precise representation of post terminal emissions and to reduce the economic horizon required to accurately approximate transition paths germaine to the economic assessment of climate policies our decomposition accommodates formulation of the economic model in a complementarity format and thereby provides a means of incorporating second best effects that are not easily represented in an optimization model

the value of life and the rise in health spending over the past half century americans spent a rising share of total economic resources on health and enjoyed substantially longer lives as a result debate on health policy often focuses on limiting the growth of health spending we investigate an issue central to this debate is the growth of health spending a rational response to changing economic conditions notably the growth of income per person we develop a model based on standard economic assumptions and argue that this is indeed the case standard preferences of the kind used widely in economics to study consumption asset pricing and labor supply imply that health spending is a superior good with an income elasticity well above one as people get richer and consumption rises the marginal utility of consumption falls rapidly spending on health to extend life allows individuals to purchase additional periods of utility the marginal utility of life extension does not decline as a result the optimal composition of total spending shifts toward health and the health share grows along with income in projections based on the quantitative analysis of our model the optimal health share of spending seems likely to exceed 30 percent by the middle of the century

an empirical test of an asymmetric information model of strikes recent developments in the theory of strategic bargaining demonstrate how informational asymmetries can lead to prolonged and costly bargaining these models can be applied to contract negotiations yielding an economic theory of strikes to date however few empirical tests of these models have been carried out in this paper a set of predictions concerning the incidence and unconditional duration of strikes is derived from a simple bargaining model in which the union is uncertain about the firm s future profitability these predictions are then tested on a micro data set of major u s contract negotiations that took place from 1973 to 1977

impacts of climate policy on the competitiveness of canadian industry how big and how to mitigate competitiveness concerns have been at the forefront of climate policy debates in canada particularly as a result of its high energy intensity and significant exposure to international markets this paper uses a dynamic computable general equilibrium model to assess the likely impacts on sectoral competitiveness that would accompany efforts to meet greenhouse gas mitigation targets that have been set by the canadian government additionally it evaluates several design mechanisms that could be used to reduce the negative competiveness impacts associated with adoption of domestic climate policies the analysis suggests that several sectors would likely face significant competiveness challenges under a reference scenario in which permits are given to emitters in lump sum however it finds that competiveness impacts can be minimized by using output based recycling of permits or by using border tax adjustments

a dynamic general equilibrium analysis on fostering a hydrogen economy in korea hydrogen is anticipated to become one of the major alternative energy technologies for a sustainable energy system this study analyzes the dynamic economic impacts of building a hydrogen economy in korea employing a dynamic computable general equilibrium cge model as a frontier technology hydrogen is featured as having a slow diffusion rate due to option value positive externality resistance of old technology and complementary vintages without government intervention hydrogen derived energy will supply up to 6 5 of final energy demand by 2040 simulation outcomes show that as price subsidy rates increase by 10 20 and 30 hydrogen demand will increase by 9 2 15 2 and 37 7 respectively of final energy demand by 2040 the output of the transportation sector will increase significantly while demands for oil and electricity will decline demands for coal and lng will experience little change household consumption will decline because of the increase of income taxes overall gdp will increase because of the increase in exports and investments co2 emission will decline for medium and high subsidy rate cases but increase for low subsidy cases ultimately subsidy policy on hydrogen will not be an effective measure for mitigating co2 emission in korea when considering dynamic general equilibrium effects

strikes and wages a test of an asymmetric information model this paper describes a simple model of labor disputes based on the hypothesis that unions use strikes to infer the profitability of the firm the model posits the existence of a negatively sloped resistance curve between wages and strike duration in addition it offer a series of predictions relating wage and strike outcomes to changes in the expected profitability of the firm and changes in the alternative opportunities of striking workers these implications are tested using data on wage outcomes strike probabilities and strike durations for a large sample of collective bargaining agreements

health care is an individual necessity and a national luxury applying multilevel decision models to the analysis of health care expenditures health care is neither a necessity or a luxury it is both since the income elasticity varies with the level of analysis with insurance individual income elasticities are typically near zero while national health expenditure elasticities are commonly greater than 1 0 the debate over whether health care is or is not a luxury good arises primarily from the failure to specify levels of analysis clearly so as to distinguish variation within groups from variation between groups apparently contradictory empirical results are shown to be consistent with a simple nested multilevel model of health care spending

strategic delay in bargaining this paper analyses a bargaining model with incomplete information in which the time between offers is an endogenous strategic variable we find equilibria involving a delay to agreement that is due to the use of strategic time delay by bargainers to signal their relative strength under some specifications of the parameters delay is present in the unique sequential equilibrium whose beliefs satisfy one intuitive restriction this delay does not vanish as the minimal time between offers becomes small