A. A. Pinto

  1. On the dynamics of bargaining.

    Authors: D. Pinheiro, A. A. Pinto, S. Z. Xanthopoulos, A. N. Yannacopoulos
    Subjects: Trading and Market Microstructure
    Abstract

    We study a bargaining scheme under which two agents update their beliefs
    about the future states of the world in order to reach an agreement on the
    price of a given contingent claim. We first formulate the problem as an
    optimization problem and prove the existence of a solution for such problem
    yielding a unique price for the contingent claim to be traded.

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