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Bargaining and Power

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  • Karos, Dominik

Abstract

Given a simple game, a power configuration specifies the power of each player in each winning coalition. We introduce a new power configuration which takes into account bargaining among players in coalitions. We show that under very weak conditions on a bargaining solution there is a power configuration which is stable with respect to renegotiations. We further show that given this power configuration there is a coalition which is both internally and Nash stable. We consider two different bargaining solutions on apex games and show under which conditions there are core stable coalitions. Finally, we investigate how infeasible coalition might affect the outcome and apply our model to the German parliament.

Suggested Citation

  • Karos, Dominik, 2013. "Bargaining and Power," Climate Change and Sustainable Development 156490, Fondazione Eni Enrico Mattei (FEEM).
    • Handle: RePEc:ags:feemcl:156490
    DOI: 10.22004/ag.econ.156490
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    Cited by:

    1. Dominik Karos, 2016. "A note on monotonic power indices, smaller coalitions, and new members," Theory and Decision, Springer, vol. 81(1), pages 89-100, June.
    2. Dominik Karos, 2015. "Stable partitions for games with non-transferable utilities and externalities," Economics Series Working Papers 741, University of Oxford, Department of Economics.
    3. Dominik Karos, 2016. "Stable partitions for games with non-transferable utility and externalities," International Journal of Game Theory, Springer;Game Theory Society, vol. 45(4), pages 817-838, November.

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    Keywords

    Environmental Economics and Policy;

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