Bargaining and cooperation in strategic form games with suspended realizations of threats
AbstractThe Hart-and-Mas-Colell bargaining model (Hart and Mas-Colell in J Eur Econ Assoc 8:7–33, 2010 ), which is based on strategic form games, is a very promising model possessing many beautiful features. Nevertheless, it is not flawless: threats used in this model may behave quite counter-intuitive, and the expected payoffs may not be consistent with the min-max solution in two-person-zero-sum games. If we postpone realizations of all threats to the end of the game, the two problems can be solved simultaneously. This is exactly the 2(a) model suggested by Hart and Mas-Colell in the last section of their paper. I prove that the new model can guarantee the existence of an SP equilibrium in the two player case. For the three-or-more-player case, unfortunately, it is shown through a counter-example that SP equilibrium may not exist. Copyright Springer-Verlag 2013
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Springer in its journal Social Choice and Welfare.
Volume (Year): 41 (2013)
Issue (Month): 2 (July)
Contact details of provider:
Web page: http://link.springer.de/link/service/journals/00355/index.htm
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Sergiu Hart & Andreu Mas-Colell, 2010. "Bargaining and Cooperation in Strategic Form Games," Journal of the European Economic Association, MIT Press, vol. 8(1), pages 7-33, 03.
- Dhillon, Amrita & Mertens, Jean Francois, 1996.
"Perfect Correlated Equilibria,"
Journal of Economic Theory,
Elsevier, vol. 68(2), pages 279-302, February.
- Dhillon, A. & Mertens, J.F., . "Perfect correlated equilibria," CORE Discussion Papers RP -1197, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- DHILLON, Amrita & MERTENS, Jean-François, 1992. "Perfect correlated equilibria," CORE Discussion Papers 1992039, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Sergiu Hart & Andreu Mas-Colell, 1994.
"Bargaining and value,"
Economics Working Papers
114, Department of Economics and Business, Universitat Pompeu Fabra, revised Feb 1995.
- Roberto Serrano, 2004.
"Fifty Years of the Nash Program, 1953-2003,"
2004-20, Brown University, Department of Economics.
- Nash, John, 1953. "Two-Person Cooperative Games," Econometrica, Econometric Society, vol. 21(1), pages 128-140, April.
- Sergiu Hart, 2004.
Discussion Paper Series
dp372, The Center for the Study of Rationality, Hebrew University, Jerusalem.
- Sergiu Hart, 2003.
"A Comparison of Non-Transferable Utility Values,"
Discussion Paper Series
dp338, The Center for the Study of Rationality, Hebrew University, Jerusalem.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Guenther Eichhorn) or (Christopher F Baum).
If references are entirely missing, you can add them using this form.