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An implementation of the Nash bargaining solution by iterated strict dominance

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  • Rachmilevitch, Shiran

Abstract

Anbarcı (2001) presented a modification of the “divide the dollar” game, in which equal division is obtained by iterated removal of strictly dominated strategies. I extend his mechanism to a general Nash demand game and show that it implements the Nash bargaining solution.

Suggested Citation

  • Rachmilevitch, Shiran, 2020. "An implementation of the Nash bargaining solution by iterated strict dominance," Economics Letters, Elsevier, vol. 188(C).
    • Handle: RePEc:eee:ecolet:v:188:y:2020:i:c:s0165176520300112
    DOI: 10.1016/j.econlet.2020.108960
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    References listed on IDEAS

    as
    1. Nash, John, 1953. "Two-Person Cooperative Games," Econometrica, Econometric Society, vol. 21(1), pages 128-140, April.
    2. Nash, John, 1950. "The Bargaining Problem," Econometrica, Econometric Society, vol. 18(2), pages 155-162, April.
    3. Emin Karagözoğlu & Shiran Rachmilevitch, 2018. "Implementing egalitarianism in a class of Nash demand games," Theory and Decision, Springer, vol. 85(3), pages 495-508, October.
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    Cited by:

    1. William Thomson, 2022. "On the axiomatic theory of bargaining: a survey of recent results," Review of Economic Design, Springer;Society for Economic Design, vol. 26(4), pages 491-542, December.
    2. Shiran Rachmilevitch, 2022. "Reasonable Nash demand games," Theory and Decision, Springer, vol. 93(2), pages 319-330, September.

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    More about this item

    Keywords

    Iterated strict dominance; Nash bargaining; Nash demand game;
    All these keywords.

    JEL classification:

    • C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games
    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory

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