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Large Group Bargaining in a Characteristic Function Game

Author

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  • J. Keith Murnighan

    (University of Illinois at Urbana-Champaign)

  • Alvin E. Roth

    (University of Illinois at Urbana-Champaign)

Abstract

This paper presents the results of an n-person characteristic function game played by between seven and and twelve players, one of whom was a monopolist. A factorial design allowed for analysis of the effects of group size, the availability of information, and communication opportunities for a series of seven trials. The data were compared to the game theoretic concepts of the core and Shapley value, (Shapley, 1953, Roth, 1977a), and to the predictions of the Weighted Probability model (Komorita, 1974). The findings indicated that the monopolist held a great deal of power, especially when communication among the players was not allowed. His payoffs increased over trials and approached the core in all of the conditions except when communicaion was available in seven and eight-person groups. The overall results were very close to the Shapley value and the predictions of the Weighted Probability model. The results were compared to an earlier study on a similar three-person game; increasing the group size seemed to be the primary case of the increase in the monopolist's payoffs.

Suggested Citation

  • J. Keith Murnighan & Alvin E. Roth, 1978. "Large Group Bargaining in a Characteristic Function Game," Journal of Conflict Resolution, Peace Science Society (International), vol. 22(2), pages 299-317, June.
    • Handle: RePEc:sae:jocore:v:22:y:1978:i:2:p:299-317
    DOI: 10.1177/002200277802200206
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    References listed on IDEAS

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    1. J. Keith Murnighan & Alvin E. Roth, 1977. "The Effects of Communication and Information Availability in an Experimental Study of a Three-Person Game," Management Science, INFORMS, vol. 23(12), pages 1336-1348, August.
    2. SCHMEIDLER, David, 1969. "The nucleolus of a characteristic function game," LIDAM Reprints CORE 44, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    3. Roth, Alvin, 2012. "The Shapley Value as a von Neumann-Morgenstern Utility," Ekonomicheskaya Politika / Economic Policy, Russian Presidential Academy of National Economy and Public Administration, vol. 6, pages 1-9.
    4. Gerard Debreu, 1963. "On a Theorem of Scarf," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 30(3), pages 177-180.
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    Cited by:

    1. Yan, Huibin & Friedman, Daniel & Munro, David, 2016. "An experiment on a core controversy," Games and Economic Behavior, Elsevier, vol. 96(C), pages 132-144.
    2. H. Andrew Michener & Greg B. Macheel & Charles G. Depies & Chris A. Bowen, 1986. "Mollifier Representation in Non-Constant-Sum Games," Journal of Conflict Resolution, Peace Science Society (International), vol. 30(2), pages 361-382, June.
    3. Rod Garratt & James E. Parco & Cheng-Zhong Qin & Amnon Rapoport, 2005. "Potential Maximization And Coalition Government Formation," International Game Theory Review (IGTR), World Scientific Publishing Co. Pte. Ltd., vol. 7(04), pages 407-429.
    4. Tanya Menon & Katherine W. Phillips, 2011. "Getting Even or Being at Odds? Cohesion in Even- and Odd-Sized Small Groups," Organization Science, INFORMS, vol. 22(3), pages 738-753, June.

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