One-dimensional bargaining with unanimity rule
AbstractThe paper examines bargaining over a one--dimensional set of social states, with a unanimity acceptance rule. We consider a class of delta-equilibria, i.e. subgame perfect equilibria in stationary strategies that are free of coordination failures in the response stage.We show that along any sequence of delta-equilibria, as delta converges to one, the proposal of each player converges to the same limit. The limit, called the bargaining outcome, is uniquely determined by the set of players, the recognition probabilities, and the utility functions, and it is independent of the choice of the sequence. We characterize the bargaining outcome as a unique solution of a characteristic equation.
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Bibliographic InfoPaper provided by Maastricht : METEOR, Maastricht Research School of Economics of Technology and Organization in its series Research Memoranda with number 011.
Date of creation: 2007
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Web page: http://www.maastrichtuniversity.nl/web/UMPublications.htm
This paper has been announced in the following NEP Reports:
- NEP-ALL-2007-04-28 (All new papers)
- NEP-GTH-2007-04-28 (Game Theory)
- NEP-UPT-2007-04-28 (Utility Models & Prospect Theory)
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.:
- Seok-ju Cho & John Duggan, 2001.
"Uniqueness of Stationary Equilibria in a one-Dimensional Model of Bargaining,"
Wallis Working Papers
WP23, University of Rochester - Wallis Institute of Political Economy.
- Cho, Seok-ju & Duggan, John, 2003. "Uniqueness of stationary equilibria in a one-dimensional model of bargaining," Journal of Economic Theory, Elsevier, vol. 113(1), pages 118-130, November.
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