The Impact of Managerial Flexibility on Negotiation Strategy and Bargaining Power
DOI:
https://doi.org/10.24352/UB.OVGU-2018-451Keywords:
real option, game theory, sale, negotiation, flexibility, ultimatum gameAbstract
Using a dynamic real options approach we show that in a sequential bargaining framework managerial flexibility is strengthening the first-mover advantage by undermining the bargaining power of the second mover. Furthermore we compare the results of the sequential framework with the results of cooperative bargaining.