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A note on van Damme's mechanism

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  • Elisabeth Naeve-Steinweg

    (Institute of Mathematical Economics, University of Bielefeld, P.O. Box 100131, D-33501 Bielefeld, Germany)

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    Abstract

    We consider (two-person) bargaining games and we assume that the agents want to apply two possibly different bargaining solutions. A mechanism is a function which assigns an allocation to every bargaining game and every pair of bargaining solutions. Examining van Damme's mechanism (1986) from a cooperative point of view we see that it fails to satisfy Pareto-optimality. By modifying it we propose a new mechanism yielding the same conclusions as the original while enjoying some additional desirable properties.

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    Bibliographic Info

    Article provided by Springer in its journal Review of Economic Design.

    Volume (Year): 4 (1999)
    Issue (Month): 2 ()
    Pages: 179-187

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    Handle: RePEc:spr:reecde:v:4:y:1999:i:2:p:179-187

    Note: Received: 8 August 1998 / Accepted: 15 October 1998
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    Web page: http://link.springer.de/link/service/journals/10058/index.htm

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    Related research

    Keywords: Meta-bargaining; Nash bargaining solution; non-cooperative approach; cooperative approach; mechanism;

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    Cited by:
    1. José M. Jiménez Gómez & María del Carmen Marco Gil & Pedro Gadea Blanco, 2010. "Some game-theoretic grounds for meeting people half-way," Working Papers. Serie AD 2010-04, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
    2. Naeve-Steinweg, E., 2004. "The averaging mechanism," Games and Economic Behavior, Elsevier, vol. 46(2), pages 410-424, February.
    3. Trockel,W., 2001. "Can and should the Nash program be looked at as a part of mechanism theory?," Working Papers 322, Bielefeld University, Center for Mathematical Economics.

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