Repeated bargaining with opportunities for learning

We describe a model in which individuals repeatedly play a non‐cooperative bargaining game against different opponents. The payoffs of the game for all but one of the possible outcomes are fixed and known from the outset. The remaining, disagreement, payoff varies with the player and is revealed to him only when he has once experienced it. This possibility of information acquisition creates an extra incentive for uninformed players not to yield in the games. With a constant fraction of new uninformed players introduced into the population in each time period, we define a symmetric equilibrium as a steady‐state condition in which all players, acting only on the information they possess, use the same best response to the actions of the rest of the population. We establish existence and uniqueness of this equilibrium and study its comparative statics properties.