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The Demand Bargaining Set: General Characterization and Application to Majority Games

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Author Info
Massimo Morelli () (Department of Economics, Ohio State University)
Maria Montero () (School of Economics, University of Nottingham)

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Abstract

The cooperative solution concept introduced here, the demand bargaining set, contains the core and is included in the Zhou bargaining set, eliminating the “dominated” coalition structures. The demand vectors belonging to the demand bargaining set are self-stable. In the class of constant-sum homogeneous weighted majority games the demand bargaining set is non-empty and predicts a unique demand vector, namely a proportional distribution within minimal winning coalitions. The noncooperative implementation of the demand bargaining set is obtained for all the games that satisfy the one-stage property.

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Publisher Info
Paper provided by Institute for Advanced Study, School of Social Science in its series Economics Working Papers with number 0011.

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Length: 27 pages
Date of creation: Nov 2001
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Publication status: Published in Games and Economic Behavior, Vol. 42(1) 2003, 146-64
Handle: RePEc:ads:wpaper:0011

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Related research
Keywords: Bargaining Sets; Stable Demands; Undominated Coalition Structures; Weighted Majority Games; Proportional Payoffs;

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Find related papers by JEL classification:
C7 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory

References listed on IDEAS
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.:

  1. Maschler, Michael, 1992. "The bargaining set, kernel, and nucleolus," Handbook of Game Theory with Economic Applications, in: R.J. Aumann & S. Hart (ed.), Handbook of Game Theory with Economic Applications, edition 1, volume 1, chapter 18, pages 591-667 Elsevier. [Downloadable!] (restricted)
  2. Zhou Lin, 1994. "A New Bargaining Set of an N-Person Game and Endogenous Coalition Formation," Games and Economic Behavior, Elsevier, vol. 6(3), pages 512-526, May. [Downloadable!] (restricted)
  3. Peter Sudhölter & Jos A. M. Potters, 2001. "The semireactive bargaining set of a cooperative game," International Journal of Game Theory, Springer, vol. 30(1), pages 117-139. [Downloadable!] (restricted)
  4. Perez-Castrillo, David & Wettstein, David, 2000. "Implementation of Bargaining Sets via Simple Mechanisms," Games and Economic Behavior, Elsevier, vol. 31(1), pages 106-120, April. [Downloadable!] (restricted)
  5. Daniel Granot & Michael Maschler, 1997. "The Reactive Bargaining Set: Structure, Dynamics and Extension to NTU Games," International Journal of Game Theory, Springer, vol. 26(1), pages 75-95.
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Cited by:
(explanations, 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.)

  1. Maria Montero & Juan Vidal-Puga, 2005. "Demand commitment in legislative bargaining," Game Theory and Information 0511005, EconWPA. [Downloadable!]
  2. Maria Montero & Juan Vidal-Puga, 2006. "Demand Bargaining and Proportional Payoffs in Legislatures," Discussion Papers 2006-11, The Centre for Decision Research and Experimental Economics, School of Economics, University of Nottingham. [Downloadable!]
  3. Lazarova, Emiliya & Borm, Peter & Montero, Maria & Reijnierse, Hans, 2006. "A bargaining set based on external and internal stability and endogenous coalition formation," Discussion Paper 16, Tilburg University, Center for Economic Research. [Downloadable!]
  4. G Frechette & J Kagel & M Morelli, 2004. "Behavioral Identification in Coalition Bargaining: An Experimental Analysis of Demand Bargaining and Alternating Offers," Levine's Bibliography 122247000000000006, UCLA Department of Economics. [Downloadable!]
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