A Tale of Two Players: Exploring the Rubinstein Bargaining Model | with Ariel Rubinstein
In today’s episode, we explore one of the classics in Bargaining theory: The Rubinstein Bargaining Model. And we have found the perfect guest - who better to explain this bargaining model than its founder Ariel Rubinstein himself! Ariel not only shares how the idea of the model came to be, but he also comments on some results and critically discusses whether the Rubinstein Bargaining Model (and Game Theory in general) has predictive or normative power for real-life situations. Ariel Rubinstein is Professor of Economics at the School of Economics at Tel Aviv University and the Department of Economics at New York University. His research is focused on Economic Theory, in particular Decision Theory and Game Theory. You can download his books for free (also the book “Economic fables” mentioned in our episode) and check out his Atlas of Cafés on his website https://arielrubinstein.tau.ac.il/ . There, you also find his original paper introducing what came to be know the “Rubinstein Bargaining Model”: “Perfect Equilibrium in a Bargaining Model”