Advanced Search
MyIDEAS: Login

Evolutionary Stability in Alternating-Offers Bargaining Games

Contents:

Author Info

  • Ken Binmore
  • Michele Piccione
  • Larry Samuelson
Registered author(s):

    Abstract

    This paper characterizes modified evolutionarily stable strategies (messes) in Rubinstein's alternating-offers, infinite-horizon bargaining game. The mess concept modifies the idea of a neutrally stable strategy by favoring a simple strategy over a more complex strategy when both yield the same payoff. We show that if strategy A is a mess, then the use of A by both players is a Nash equilibriumin which an agreement is achieved immediately, and neither player would be willing to delay the agreement by one period in order to achieve the other player's share of the surplus. Each player's share of the surplus is then bounded between the shares received by the two players in the unique subgame-perfect equilibrium of Rubinstein's game. As the probability of a breakdown in negotiations becomes small (or discount factors become large), these bounds collapse on the subgame-perfect equilibrium. These results continue to hold when offers must be made in multiples of a smallest monetary unit.

    Download Info

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below under "Related research" whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Bibliographic Info

    Paper provided by ESRC Centre on Economics Learning and Social Evolution in its series ELSE working papers with number 041.

    as in new window
    Length:
    Date of creation:
    Date of revision:
    Handle: RePEc:els:esrcls:041

    Contact details of provider:
    Postal: Gower Street, London WC1E 6BT
    Email:
    Web page: http://else.econ.ucl.ac.uk/
    More information through EDIRC

    Related research

    Keywords: Bargaining; Alternating offers; Subgame perfection; Evolution-ary stability;

    Find related papers by JEL classification:

    References

    No references listed on IDEAS
    You can help add them by filling out this form.

    Citations

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:els:esrcls:041. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (s. malkani) The email address of this maintainer does not seem to be valid anymore. Please ask s. malkani to update the entry or send us the correct address.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.