Conflict Leads to Cooperation in Nash Bargaining

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Conflict Leads to Cooperation in Nash Bargaining

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Kareen Rozen () (Cowles Foundation, Yale University)

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Kareen Rozen

Abstract

We 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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Publisher Info
Paper provided by Cowles Foundation, Yale University in its series Cowles Foundation Discussion Papers with number 1641.

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Length: 17 pages
Date of creation: Mar 2008
Date of revision: Jun 2009
Handle: RePEc:cwl:cwldpp:1641

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Other versions of this item:

Paper
- Kareen Rozen, 2008. "Conflict Leads to Cooperation in Nash Bargaining," Levine's Bibliography 122247000000002086, UCLA Department of Economics. [Downloadable!]
- Rozen, Kareen, 2008. "Conflict Leads to Cooperation in Nash Bargaining," Working Papers 39, Yale University, Department of Economics. [Downloadable!]

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

This paper has been announced in the following NEP Reports:

NEP-ALL-2008-03-08 (All new papers)
NEP-CDM-2008-03-08 (Collective Decision-Making)
NEP-GTH-2008-03-08 (Game Theory)
NEP-SOC-2008-03-08 (Social Norms & Social Capital)

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.:

Perry, Motty & Reny, Philip J, 1994. "A Noncooperative View of Coalition Formation and the Core," Econometrica, Econometric Society, vol. 62(4), pages 795-817, July. [Downloadable!] (restricted)
Other versions:
- Perry, M. & Rany, P., 1992. "A Non-Cooperative View of Coalition Formation and the Core," UWO Department of Economics Working Papers 9203, University of Western Ontario, Department of Economics.
Arnold, Tone & Schwalbe, Ulrich, 2002. "Dynamic coalition formation and the core," Journal of Economic Behavior & Organization, Elsevier, vol. 49(3), pages 363-380, November. [Downloadable!] (restricted)
Chatterjee, Kalyan & Bhaskar Dutta & Debraj Ray & Kunal Sengupta, 1993. "A Noncooperative Theory of Coalitional Bargaining," Review of Economic Studies, Blackwell Publishing, vol. 60(2), pages 463-77, April. [Downloadable!] (restricted)
Agastya, Murali, 1997. "Adaptive Play in Multiplayer Bargaining Situations," Review of Economic Studies, Blackwell Publishing, vol. 64(3), pages 411-26, July. [Downloadable!] (restricted)
Other versions:
- Murali Agastia, . "Adaptive Play in Multiplayer Bargaining Situations," ELSE working papers 007, ESRC Centre on Economics Learning and Social Evolution. [Downloadable!]
Kandori, Michihiro & Mailath, George J & Rob, Rafael, 1993. "Learning, Mutation, and Long Run Equilibria in Games," Econometrica, Econometric Society, vol. 61(1), pages 29-56, January. [Downloadable!] (restricted)
Other versions:
- Kandori, M. & Mailath, G.J., 1991. "Learning, Mutation, And Long Run Equilibria In Games," Papers 71, Princeton, Woodrow Wilson School - John M. Olin Program.
Nash, John, 1950. "The Bargaining Problem," Econometrica, Econometric Society, vol. 18(2), pages 155-162, April. [Downloadable!] (restricted)
Konishi, Hideo & Ray, Debraj, 2003. "Coalition formation as a dynamic process," Journal of Economic Theory, Elsevier, vol. 110(1), pages 1-41, May. [Downloadable!] (restricted)
Other versions:
- Hideo Konishi & Debraj Ray, 2000. "Coalition Formation as a Dynamic Process," Boston College Working Papers in Economics 478, Boston College Department of Economics, revised 15 Apr 2002. [Downloadable!]
Young H. P., 1993. "An Evolutionary Model of Bargaining," Journal of Economic Theory, Elsevier, vol. 59(1), pages 145-168, February. [Downloadable!] (restricted)
Agastya, Murali, 1999. "Perturbed Adaptive Dynamics in Coalition Form Games," Journal of Economic Theory, Elsevier, vol. 89(2), pages 207-233, December. [Downloadable!] (restricted)

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