Despite many applications of prospect theory's concepts to explain political and strategic phenomena, formal analyses of strategic problems using prospect theory are rare. Using Fearon's model of bargaining, Tversky and Kahneman's value function, and an existing probability weighting function, I construct a model that demonstrates the differences…

Although many decisions involve a stream of payoffs over time, political scientists have given little attention to how actors make the required tradeoffs between present and future payoffs, other than applying the standard exponential discounting model from economics. After summarizing the basic discounting model, we identify some of its leading…

Presents a theoretical model of collective bargaining based on the premise that the expectations and learning ability of the negotiators play a central role in bargaining. Discusses some implications of the model. Available from: Sage Publications, Inc., 275 South Beverly Drive, Beverly Hills, California 90212. (JG)