Multi-Agent Bilateral Bargaining and the Nash Bargaining Solution
AbstractThis paper studies a bargaining model where n players play a sequence of (n-1) bilateral bargaining sessions. In each bilateral bargaining session, two players follow the same bargaining process as in Rubinstein's (1982). A partial agreement between two players is reached in the session and one player effectively leaves the game with a share agreed upon in the partial agreement and the other moves on to the next session. Such a (multi-agent) bilateral bargaining model admits a unique subgame perfect equilibrium. Depending on who exits and who stays, we consider two bargaining procedures. The equilibrium outcomes under the two bargaining procedures converge to the Nash (1950) bargaining solution of the corresponding bargaining problem as the players' discount factor goes to one. Thus, the bilateral bargaining model studied in this paper provides a non-cooperative foundation for the Nash cooperative bargaining solution in the multilateral case.
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 Vanderbilt University Department of Economics in its series Vanderbilt University Department of Economics Working Papers with number 0306.
Date of creation: Mar 2003
Date of revision:
Contact details of provider:
Web page: http://www.vanderbilt.edu/econ/wparchive/index.html
Multilateral bargaining; subgame perfect equilibrium; Nash bargaining solution;
Other versions of this item:
- Suh, Sang-Chul & Wen, Quan, 2006. "Multi-agent bilateral bargaining and the Nash bargaining solution," Journal of Mathematical Economics, Elsevier, vol. 42(1), pages 61-73, February.
- 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:
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.:
- Ariel Rubinstein, 2010.
"Perfect Equilibrium in a Bargaining Model,"
Levine's Working Paper Archive
661465000000000387, David K. Levine.
- Thomson,William & Lensberg,Terje, 2006.
"Axiomatic Theory of Bargaining with a Variable Number of Agents,"
Cambridge University Press, number 9780521027038, November.
- Thomson,William & Lensberg,Terje, 1989. "Axiomatic Theory of Bargaining with a Variable Number of Agents," Cambridge Books, Cambridge University Press, number 9780521343831, November.
- Yang, Jeong-Ae, 1992. "Another n-person bargaining game with a unique perfect equilibrium," Economics Letters, Elsevier, vol. 38(3), pages 275-277, March.
- Kalyan Chatterjee & Hamid Sabourian, 2000.
"Multiperson Bargaining and Strategic Complexity,"
Econometric Society, vol. 68(6), pages 1491-1510, November.
- Kalyan Chatterjee & Hamid Sabourian, 1998. "Multiperson Bargaining and Strategic Complexity," CRIEFF Discussion Papers 9808, Centre for Research into Industry, Enterprise, Finance and the Firm.
- Chatterjee, K. & Sabourian, H., 1997. "Multiperson Bargaining and Strategic Complexity," Cambridge Working Papers in Economics 9733, Faculty of Economics, University of Cambridge.
- Houba, Harold, 1993.
"An alternative proof of uniqueness in non-cooperative bargaining,"
Elsevier, vol. 41(3), pages 253-256.
- Houba, H., 1993. "An alternative proof of uniqueness in non-cooperative bargaining," Serie Research Memoranda 0015, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
- Krishna, Vijay & Serrano, Roberto, 1996. "Multilateral Bargaining," Review of Economic Studies, Wiley Blackwell, vol. 63(1), pages 61-80, January.
- Lensberg, Terje, 1988. "Stability and the Nash solution," Journal of Economic Theory, Elsevier, vol. 45(2), pages 330-341, August.
- Thomson, W., 1998.
"Consistency and its Converse: an Introduction,"
RCER Working Papers
448, University of Rochester - Center for Economic Research (RCER).
- Muthoo,Abhinay, 1999. "Bargaining Theory with Applications," Cambridge Books, Cambridge University Press, number 9780521576475, November.
- Nash, John, 1950. "The Bargaining Problem," Econometrica, Econometric Society, vol. 18(2), pages 155-162, April.
- Chen-Ying Huang, 2002. "Multilateral bargaining: conditional and unconditional offers," Economic Theory, Springer, vol. 20(2), pages 401-412.
- Asheim, Geir B., 1992.
"A unique solution to n-person sequential bargaining,"
Games and Economic Behavior,
Elsevier, vol. 4(2), pages 169-181, April.
- Asheim, G.B., 1989. "A Unique Solution To N-Person Sequential Bargaining," Papers 11-89, Norwegian School of Economics and Business Administration-.
- Chae, Suchan & Yang, Jeong-Ae, 1988. "The unique perfect equilibrium of an n-person bargaining game," Economics Letters, Elsevier, vol. 28(3), pages 221-223.
- Cai, Hongbin, 2000. "Delay in Multilateral Bargaining under Complete Information," Journal of Economic Theory, Elsevier, vol. 93(2), pages 260-276, August.
- Shaked, Avner & Sutton, John, 1984. "Involuntary Unemployment as a Perfect Equilibrium in a Bargaining Model," Econometrica, Econometric Society, vol. 52(6), pages 1351-64, November.
- Martin J. Osborne & Ariel Rubinstein, 2005. "Bargaining and Markets," Levine's Bibliography 666156000000000515, UCLA Department of Economics.
- BRITZ, Volker & HERINGS, Jean-Jacques & PREDTETCHINSKI, Arkadi, 2013. "On the Convergence to the Nash bargaining solution for action-dependent bargaining protocols," CORE Discussion Papers 2013044, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Yi-Chun Chen & Xiao Luo, 2008. "Delay in a bargaining game with contracts," Theory and Decision, Springer, vol. 65(4), pages 339-353, December.
- Hannu Vartiainen & Klaus Kultti, 2007.
"Multilateral Non-Cooperative Bargaining in a General Utility Space,"
19, Aboa Centre for Economics.
- Klaus Kultti & Hannu Vartiainen, 2010. "Multilateral non-cooperative bargaining in a general utility space," International Journal of Game Theory, Springer, vol. 39(4), pages 677-689, October.
- P. Herings & Arkadi Predtetchinski, 2012.
"Sequential share bargaining,"
International Journal of Game Theory,
Springer, vol. 41(2), pages 301-323, May.
- Herings P. Jean-Jacques & Britz Volker & Predtetchinski Arkadi, 2012. "On the Convergence to Nash Bargaining Solution for Endogenous Bargaining Protocols," Research Memoranda 030, Maastricht : METEOR, Maastricht Research School of Economics of Technology and Organization.
- Sang-Chul Suh & Quan Wen, 2009. "A multi-agent bilateral bargaining model with endogenous protocol," Economic Theory, Springer, vol. 40(2), pages 203-226, August.
- Edwin L.-C. Lai, 2008. "The most-favored nation rule in club enlargement negotiation," Working Papers 0815, Federal Reserve Bank of Dallas.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (John P. Conley).
If references are entirely missing, you can add them using this form.