Two-Stage Bargaining with Reversible Coalitions: the Case of Apex Games
AbstractThis paper studies coalition formation and payoff division in a class of majority games (apex games) assuming that payoff division can only be agreed upon after forming the coalition (two-stage bargaining) and that negotiations in the coalition can break down and a new coalition be formed (reversible coalitions). In contrast with the results of other two-stage models, all minimal winning coalitions may form and expected payoffs coincide with the per capita nucleolus. These results are robust to small changes in the bargaining procedure. Surprisingly, having a two-stage process (rather than a one-stage process with simultaneous coalition formation and payoff division) benefits the apex player.
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Bibliographic InfoPaper provided by Royal Economic Society in its series Royal Economic Society Annual Conference 2003 with number 157.
Date of creation: 04 Jun 2003
Date of revision:
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coalition formation; two-stage bargaining; reversible coalitions; apex games; per capita nucleolus;
Other versions of this item:
- Montero, M.P., 2002. "Two-Stage Bargaining with Reversible Coalitions: The Case of Apex Games," Discussion Paper 2002-26, Tilburg University, Center for Economic Research.
- C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games
- C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
- C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
This paper has been announced in the following NEP Reports:
- NEP-ALL-2003-06-16 (All new papers)
- NEP-GTH-2003-06-16 (Game Theory)
- NEP-IND-2003-06-16 (Industrial Organization)
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.:
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- Montero, M.P., 1999.
"Noncooperative Bargaining in Apex Games and the Kernel,"
1999-61, Tilburg University, Center for Economic Research.
- Montero, Maria, 2002. "Non-cooperative bargaining in apex games and the kernel," Games and Economic Behavior, Elsevier, vol. 41(2), pages 309-321, November.
- Slikker, M., 2000. "Decision Making and Cooperation Restrictions," Open Access publications from Tilburg University urn:nbn:nl:ui:12-82556, Tilburg University.
- Hart, Sergiu & Kurz, Mordecai, 1983. "Endogenous Formation of Coalitions," Econometrica, Econometric Society, vol. 51(4), pages 1047-64, July.
- Bennett, E. & Van Damme, E., 1990. "Demand Commitment Bargaining: -The Case Of Apex Games," Papers 9062, Tilburg - Center for Economic Research.
- Okada, Akira, 1996. "A Noncooperative Coalitional Bargaining Game with Random Proposers," Games and Economic Behavior, Elsevier, vol. 16(1), pages 97-108, September.
- Martin J. Osborne & Ariel Rubinstein, 2005. "Bargaining and Markets," Levine's Bibliography 666156000000000515, UCLA Department of Economics.
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