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Alliances and Negotiations

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Author Info

  • Paola MAnzini

    (Queen Mary, University of LOndon and IZA)

  • Marco Mariotti

    (University of Exeter)

Abstract

A characteristic of many bargaining situations is that the negotiators represents the interests of a set of parties (trade unions, political parties, etc.) with composite interests, whose bargaining behaviour is regulated by some collective decision mechanism. In this paper we provide a natural model of such circumstances, and show how different preference aggregation procedures within the composite player affect the bargaining outcome. In particular we find that unanimity procedures lead to 'more aggressive' behaviour than majority procedures, and that procedures which introduce minimum safeguards for the members of an alliance may result in agreements that are worse than without those safeguards.

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Bibliographic Info

Paper provided by EconWPA in its series Game Theory and Information with number 0004007.

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Length: 27 pages
Date of creation: 17 Nov 2000
Date of revision:
Handle: RePEc:wpa:wuwpga:0004007

Note: Type of Document - SWorkplace 2.5; prepared on IBM PC ; to print on HP; pages: 27 ; figures: included
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Web page: http://128.118.178.162

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Keywords: Alliances; multiperson bargaining;

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References

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  1. Rubinstein, Ariel, 1982. "Perfect Equilibrium in a Bargaining Model," Econometrica, Econometric Society, vol. 50(1), pages 97-109, January.
  2. Binmore, K. & Osborne, M.J. & Rubinstein, A., 1989. "Noncooperative Models Of Bargaining," Papers 89-26, Michigan - Center for Research on Economic & Social Theory.
  3. Manzini, Paola & Mariotti, Marco, 2002. "The Effect of Disagreement on Noncooperative Bargaining," Journal of Economic Theory, Elsevier, vol. 107(2), pages 490-499, December.
  4. Ponsati, Clara & Sakovics, Jozsef, 1996. "Multiperson Bargaining over Two Alternatives," Games and Economic Behavior, Elsevier, vol. 12(2), pages 226-244, February.
  5. Haller, Hans & Holden, Steinar, 1997. "Ratification Requirement and Bargaining Power," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 38(4), pages 825-51, November.
  6. Martin J. Osborne & Ariel Rubinstein, 2005. "Bargaining and Markets," Levine's Bibliography 666156000000000515, UCLA Department of Economics.
  7. 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.
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Citations

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Cited by:
  1. Alexander Elbittar & Andrei Gomberg & Laura Sour, 2005. "Group Decision-Making and Voting in Ultimatum Bargaining: An Experimental Study," Experimental 0511002, EconWPA.
  2. Paola Manzini & Marco Mariotti, 2009. "Alliances and negotiations: an incomplete information example," Review of Economic Design, Springer, vol. 13(3), pages 195-203, September.
  3. Philip Bond & Hülya Eraslan, 2004. "Strategic Voting over Strategic Proposals, Second Version," PIER Working Paper Archive 07-014, Penn Institute for Economic Research, Department of Economics, University of Pennsylvania, revised 02 Jan 2007.
  4. Alexander Elbittar & Andrei Gomberg, 2012. ""My friends: it would be an error to accept": Communication and group identity in a bargaining setting," Working Papers 1203, Centro de Investigacion Economica, ITAM.
  5. Carraro, Carlo & Sgobbi, Alessandra, 2007. "Modelling Negotiated Decision Making: A Multilateral, Multiple Issues, Non-Cooperative Bargaining Model with Uncertainty," CEPR Discussion Papers 6424, C.E.P.R. Discussion Papers.
  6. Philip Bond & Hulya Eraslan, 2008. "Strategic Voting over Strategic Proposals," Economics Working Paper Archive 547, The Johns Hopkins University,Department of Economics.
  7. Kai A. Konrad & Thomas R. Cusack, 2013. "Hanging Together or Being Hung Separately: The Strategic Power of Coalitions where Bargaining Occurs with Incomplete Information," CESifo Working Paper Series 4071, CESifo Group Munich.
  8. Suchan Chae & Paul Heidhues, 2001. "Nash Bargaining Solution with Coalitions and The Joint Bargaining Paradox," CIG Working Papers FS IV 01-15, Wissenschaftszentrum Berlin (WZB), Research Unit: Competition and Innovation (CIG).

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