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Unstructured Bargaining Experiment on Three-person Cooperative Games

Author

Listed:
  • Taro Shinoda

    (Waseda University)

  • Yukihiko Funaki

    (Waseda University)

Abstract

In the cooperative game theory, we study only how to distribute payoffs by assuming that the grand coalition is formed. However, in real bargaining situation, the payoff distribution is considered with the coalition formation simultaneously. The players can make not only the grand coalition but also smaller coalitions. Also, they have to reach an agreement on just one payoff distribution. In order to know what happens in this situation, we design and run a laboratory experiment. As experimental results, we find the following things. First, the grand coalition is more likely to be formed when the core is non-empty than empty. Availability of the chat window is also positively correlated with formation of the grand coalition. Second, the payoff distribution the subjects agree with is depending on their power in bargaining. Unlike the others' bargaining experiment, the equal division is not very frequently adopted.

Suggested Citation

  • Taro Shinoda & Yukihiko Funaki, 2019. "Unstructured Bargaining Experiment on Three-person Cooperative Games," Working Papers 1915, Waseda University, Faculty of Political Science and Economics.
  • Handle: RePEc:wap:wpaper:1915
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    References listed on IDEAS

    as
    1. Urs Fischbacher, 2007. "z-Tree: Zurich toolbox for ready-made economic experiments," Experimental Economics, Springer;Economic Science Association, vol. 10(2), pages 171-178, June.
    2. SCHMEIDLER, David, 1969. "The nucleolus of a characteristic function game," LIDAM Reprints CORE 44, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
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    Cited by:

    1. Chessa, Michela & Hanaki, Nobuyuki & Lardon, Aymeric & Yamada, Takashi, 2023. "An experiment on the Nash program: A comparison of two strategic mechanisms implementing the Shapley value," Games and Economic Behavior, Elsevier, vol. 141(C), pages 88-104.

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    More about this item

    Keywords

    laboratory experiment; cooperative game; coalition formation; payoff distribution; bargaining;
    All these keywords.

    JEL classification:

    • C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games
    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior

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