Finite Horizon Bargaining and the Consistent Field
AbstractThis paper explores the relationships between noncooperative bargaining games and the consistent value for non-transferable utility (NTU) cooperative games. A dynamic approach to the consistent value for NTU games is introduced: the consistent vector field. The main contribution of the paper is to show that the consistent field is intimately related to the concept of subgame perfection for finite horizon noncooperative bargaining games, as the horizon goes to infinity and the cost of delay goes to zero. The solutions of the dynamic system associated to the consistent field characterize the subgame perfect equilibrium payoffs of the noncooperative bargaining games. We show that for transferable utility, hyperplane and pure bargaining games, the dynamics of the consistent field converge globally to the unique consistent value. However, in the general NTU case, the dynamics of the consistent field can be complex. An example is constructed where the consistent field has cyclic solutions; moreover, the finite horizon subgame perfect equilibria do not approach the consistent value. Journal of Economic Literature Classification Numbers: C71, C72.
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 EconWPA in its series Game Theory and Information with number 9705003.
Date of creation: 07 May 1997
Date of revision:
Note: Type of Document - LaTeX. See also
Contact details of provider:
Web page: http://126.96.36.199
Other versions of this item:
- Gomes, Armando & Hart, Sergiu & Mas-Colell, Andreu, 1999. "Finite Horizon Bargaining and the Consistent Field," Games and Economic Behavior, Elsevier, vol. 27(2), pages 204-228, May.
- Armando Gomes & Sergiu Hart & Andreu Mas-Colell, 1997. "Finite horizon bargaining and the consistent field," Economics Working Papers 241, Department of Economics and Business, Universitat Pompeu Fabra.
- C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games
- C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
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.:
- Hart, Oliver & Moore, John, 1990.
"Property Rights and the Nature of the Firm,"
Journal of Political Economy,
University of Chicago Press, vol. 98(6), pages 1119-58, December.
- Oliver Hart & John Moore, 1988. "Property Rights and the Nature of the Firm," Working papers 495, Massachusetts Institute of Technology (MIT), Department of Economics.
- Hart, Oliver D. & Moore, John, 1990. "Property Rights and the Nature of the Firm," Scholarly Articles 3448675, Harvard University Department of Economics.
- Hart, Sergiu & Mas-Colell, Andreu, 1996.
"Harsanyi Values of Large Economies: Nonequivalence to Competitive Equilibria,"
Games and Economic Behavior,
Elsevier, vol. 13(1), pages 74-99, March.
- Hart, S. & Mas-Colell, A., 1993. "Harsanyi Values of Large Economies: Non Equivalence to Competitive Equilibria," Harvard Institute of Economic Research Working Papers 9, Harvard - Institute of Economic Research.
- Winter, Eyal, 1994. "The Demand Commitment Bargaining and Snowballing Cooperation," Economic Theory, Springer, vol. 4(2), pages 255-73, March.
- Sjostrom, Tomas, 1991. "Stahl's bargaining model," Economics Letters, Elsevier, vol. 36(2), pages 153-157, June.
- Nash, John, 1950. "The Bargaining Problem," Econometrica, Econometric Society, vol. 18(2), pages 155-162, April.
- Maschler,Michael Owen,Guillermo & Peleg,Bezalel, 1987. "Paths leadings to the Nash set," Discussion Paper Serie A 135, University of Bonn, Germany.
- Martin J. Osborne & Ariel Rubinstein, 2005. "Bargaining and Markets," Levine's Bibliography 666156000000000515, UCLA Department of Economics.
- Hart, Sergiu & Mas-Colell, Andreu, 1989. "Potential, Value, and Consistency," Econometrica, Econometric Society, vol. 57(3), pages 589-614, May.
- Maschler, M & Owen, G, 1989. "The Consistent Shapley Value for Hyperplane Games," International Journal of Game Theory, Springer, vol. 18(4), pages 389-407.
- Sergiu Hart & Andreu Mas-Colell, 1994.
"Bargaining and value,"
Economics Working Papers
114, Department of Economics and Business, Universitat Pompeu Fabra, revised Feb 1995.
- Gul, Faruk, 1989. "Bargaining Foundations of Shapley Value," Econometrica, Econometric Society, vol. 57(1), pages 81-95, January.
- Armando Gomes, .
"A Theory of Negotiations and Formation of Coalitions,"
Rodney L. White Center for Financial Research Working Papers
21-99, Wharton School Rodney L. White Center for Financial Research.
- Armando Gomes, . "A Theory of Negotiation and Formation of Coalition," CARESS Working Papres 99-12, University of Pennsylvania Center for Analytic Research and Economics in the Social Sciences.
- Armo Gomes, . "A Theory of Negotiation and Formation of Coalition," Penn CARESS Working Papers f0f956747161c96ffb6e79d05, Penn Economics Department.
- Joan Mª Esteban & József Sákovics, 2005.
"A Theory of Agreements in the Shadow of Conflict,"
255, Barcelona Graduate School of Economics.
- Barberá, Salvador & Perea, Andrés, .
"Supporting others and the evolution of influence,"
Open Access publications from Universidad Carlos III de Madrid
info:hdl:10016/6171, Universidad Carlos III de Madrid.
- Emililo Calvo, 2004. "Single NTU-value solutions," Game Theory and Information 0405004, EconWPA, revised 10 Jun 2004.
- de Clippel, Geoffroy, 2007. "The procedural value for cooperative games with non-transferable utility," Mathematical Social Sciences, Elsevier, vol. 53(1), pages 46-52, January.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (EconWPA).
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.