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Reject and renegotiate: The Shapley value in multilateral bargaining

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  • Ju, Yuan

Abstract

This paper investigates three distinctive and intuitive renegotiation bargaining protocols that all yield the Shapley value as the unique subgame perfect equilibrium outcome. These protocols, built on the multi-bidding procedure of Pérez-Castrillo and Wettstein (2001), allow more freedom in multilateral bargaining where rejected players can further negotiate and form coalitions. The self-duality of the Shapley value plays a key role in the second and third results. Moreover, these renegotiation protocols allow an actual play along the equilibrium path to restore the Shapley value in case of a ‘mistake’ made before.

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  • Ju, Yuan, 2012. "Reject and renegotiate: The Shapley value in multilateral bargaining," Journal of Mathematical Economics, Elsevier, vol. 48(6), pages 431-436.
    • Handle: RePEc:eee:mateco:v:48:y:2012:i:6:p:431-436
    DOI: 10.1016/j.jmateco.2012.08.009
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    References listed on IDEAS

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    4. Roberto Serrano, 2021. "Sixty-seven years of the Nash program: time for retirement?," SERIEs: Journal of the Spanish Economic Association, Springer;Spanish Economic Association, vol. 12(1), pages 35-48, March.

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