A Demand Adjustment Process
AbstractThe aspiration approach to cooperative games, which has been studied by a number of authors, including Cross, Turbay, Albers, Selten and Bennett, presumes that players in a game bargain over their reservation prices, or aspirations. A number of aspiration-based solution concepts have been put forth, and aspiration solutions have been connected to non-cooperative bargaining models. Missing in this approach has been theory of how aspirations themselves arise. The present paper is an attempt to fill this gap. It describes a very general demand adjustment process, using the framework of set-valued dynamical systems developed by Maschler and Peleg. This demand adjustment process always converges; sufficient conditions are given in order that it converge to an aspiration, and that it converge in a finite number of steps.
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.
Bibliographic InfoPaper provided by UCLA Department of Economics in its series UCLA Economics Working Papers with number 724.
Date of creation: 01 Nov 1994
Date of revision:
Contact details of provider:
Web page: http://www.econ.ucla.edu/
Other versions of this item:
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.:
- Bennett, Elaine & Wooders, Myrna, 1979. "Income distribution and firm formation," Journal of Comparative Economics, Elsevier, vol. 3(3), pages 304-317, September.
- Sharkey, W.W., 1993. "A Characterization of Some Aspiration Solutions with an Application to Spatial Games," Papers 95, Bell Communications - Economic Research Group.
- Moldovanu, Benny & Eyal Winter, 1993.
"Core Implementation and Increasing Returns to Scale for Cooperation,"
Discussion Paper Serie B
289, University of Bonn, Germany.
- Moldovanu, Benny & Winter, Eyal, 1994. "Core implementation and increasing returns to scale for cooperation," Journal of Mathematical Economics, Elsevier, vol. 23(6), pages 533-548, November.
- Bennett, Elaine & Zame, William R, 1988. "Bargaining in Cooperative Games," International Journal of Game Theory, Springer, vol. 17(4), pages 279-300.
- Engl, Greg & Scotchmer, Suzanne, 1996.
"The core and the hedonic core: Equivalence and comparative statics,"
Journal of Mathematical Economics,
Elsevier, vol. 26(2), pages 209-248.
- Suzanne Scotchmer and Greg Engl., 1992. "The Core and the Hedonic Core: Equivalence and Comparative Statics," Economics Working Papers 92-197, University of California at Berkeley.
- Benny Moldovanu & Eyal Winter, 1990. "Consistent demands for coalition formation in NTU games," Discussion Paper Serie B 147, University of Bonn, Germany.
- Elaine Bennett, 1986. "Multilateral Bargaining Problems," UCLA Economics Working Papers 594, UCLA Department of Economics.
- Moulin, H, 1990. "Cores and Large Cores When Population Varies," International Journal of Game Theory, Springer, vol. 19(2), pages 219-32.
- Gerard van der Laan & Vitaly Pruzhansky, 2004. "Demand Adjustment in Coalitional Games," Tinbergen Institute Discussion Papers 04-121/1, Tinbergen Institute.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Tim Kwok).
If references are entirely missing, you can add them using this form.