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Negotiating the membership

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  • Juan Vidal-Puga

    (Universidade de Vigo)

Abstract

In cooperative games in which the players are partitioned into groups, we study the incentives of the members of a group to leave it and become singletons. In this context, we model a non-cooperative mechanism in which each player has to decide whether to stay in his group or to exit and act as a singleton. We show that players, acting myopically, always reach a Nash equilibrium.

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File URL: http://128.118.178.162/eps/game/papers/0409/0409003.pdf
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Bibliographic Info

Paper provided by EconWPA in its series Game Theory and Information with number 0409003.

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Length: 20 pages
Date of creation: 01 Sep 2004
Date of revision:
Handle: RePEc:wpa:wuwpga:0409003

Note: Type of Document - pdf; pages: 20 . pdf, a4 papersize, prepared from Scientific WorkPlace, figures included
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Web page: http://128.118.178.162

Related research

Keywords: Cooperative game; coalition structure; Owen value; Nash equilibrium;

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  1. Harsanyi,John C., 1986. "Rational Behaviour and Bargaining Equilibrium in Games and Social Situations," Cambridge Books, Cambridge University Press, number 9780521311830.
  2. Roger B. Myerson, 1976. "Graphs and Cooperation in Games," Discussion Papers 246, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
  3. Okada, Akira, 1996. "A Noncooperative Coalitional Bargaining Game with Random Proposers," Games and Economic Behavior, Elsevier, vol. 16(1), pages 97-108, September.
  4. Calvo, Emilio & Javier Lasaga, J. & Winter, Eyal, 1996. "The principle of balanced contributions and hierarchies of cooperation," Mathematical Social Sciences, Elsevier, vol. 31(3), pages 171-182, June.
  5. Juan Vidal-Puga, 2005. "A bargaining approach to the Owen value and the Nash solution with coalition structure," Economic Theory, Springer, vol. 25(3), pages 679-701, 04.
  6. Hart, Sergiu & Kurz, Mordecai, 1983. "Endogenous Formation of Coalitions," Econometrica, Econometric Society, vol. 51(4), pages 1047-64, July.
  7. Bloch, Francis, 1996. "Sequential Formation of Coalitions in Games with Externalities and Fixed Payoff Division," Games and Economic Behavior, Elsevier, vol. 14(1), pages 90-123, May.
  8. Chatterjee, Kalyan & Bhaskar Dutta & Debraj Ray & Kunal Sengupta, 1993. "A Noncooperative Theory of Coalitional Bargaining," Review of Economic Studies, Wiley Blackwell, vol. 60(2), pages 463-77, April.
  9. Chae, Suchan & Heidhues, Paul, 2004. "A group bargaining solution," Mathematical Social Sciences, Elsevier, vol. 48(1), pages 37-53, July.
  10. Vidal-Puga, Juan & Bergantinos, Gustavo, 2003. "An implementation of the Owen value," Games and Economic Behavior, Elsevier, vol. 44(2), pages 412-427, August.
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