Conflict Leads to Cooperation in Nash Bargaining
AbstractWe consider a multilateral Nash demand game where short-sighted players come to the bargaining table with requests for both coalition partners and the potentially generated resource. We prove that group learning leads with probability one to complete cooperation and a strictly self-enforcing allocation (i.e., in the interior of the core). Highlighting group dynamics, we demonstrate that behaviors which appear destructive can themselves lead to beneficial and strictly self-enforcing cooperation.
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Date of creation: 04 Apr 2008
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Other versions of this item:
- Kareen Rozen, 2008. "Conflict Leads to Cooperation in Nash Bargaining," Cowles Foundation Discussion Papers 1641, Cowles Foundation for Research in Economics, Yale University, revised Jun 2009.
- Rozen, Kareen, 2008. "Conflict Leads to Cooperation in Nash Bargaining," Working Papers 39, Yale University, Department of Economics.
- C7 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory
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