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None of the outside options seem all that clear-cut to Mr. O'Brien -- at least at the moment.
In a second step, the outside options are determined endogenously.
The majority-race partner, presumably, has higher outside options and more bargaining power.
Secondly, different specifications of the bargaining parties' outside options have been also tested.
Intuitively, outside options give rise to lower bounds for the player's payoff.
This implies that the parties' outside options in the bargaining stage are zero.
Similar(7)
The outside option of the worker i.e.e
Union (i)'s outside option is equal to zero.
According to the outside option principle the holdup problem can be solved when the non-investor has a binding outside option.
The decision maker has an outside option that functions as a default alternative.
However, the worker's outside option is likely to be a function of individual characteristics.
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