In subsection 10.2.2 it was mentioned that if the seller has the opportunity to switch and…

In subsection 10.2.2 it was mentioned that if the seller has the opportunity to switch and bargain with another buyer, he will in general quit the relationship in finite time before having realized all gains from trade with this buyer. The same phenomenon occurs when the seller can break off the negotiations and consume the good himself. Here is an example of the multiplicity of equilibria associated with an endogenous finite horizon. Consider the sale model. The seller makes offers at t = 0, 1,…. The seller's cost is 0. The seller decides in each period whether to consume the good (in which case he does not get to make an offer in this period or any