IDEAS home Printed from https://ideas.repec.org/a/ebl/ecbull/eb-05c70032.html

Discounting and efficiency in coalitional bargaining with random proposers

Author

Listed:
  • Tomohiko Kawamori

    (Graduate School of Economics, University of Tokyo)

Abstract

This paper analyzes a random-proposer coalitional bargaining game with different discount factors, which is a generalized version of Okada's (1996) model. We consider limit subgame efficiency which means that when the discount factors are sufficiently close to unity, the full coalition is formed in each subgame. In this paper, a negative result is shown: The limit subgame efficiency is attained if and only if values of the characteristic function are zero for all coalitions but the grand coalition. This result implies that under different discount factors, even under a naturally generalized condition of Okada''s necessary and sufficient condition for the limit subgame efficiency, the limit subgame efficiency is not necessarily achieved. On the other hand, it is shown that under a condition on the region of players'' discount factors, the generalized condition of Okada''s condition is almost necessary and sufficient for the limit subgame efficiency.

Suggested Citation

  • Tomohiko Kawamori, 2005. "Discounting and efficiency in coalitional bargaining with random proposers," Economics Bulletin, AccessEcon, vol. 3(40), pages 1-11.
    • Handle: RePEc:ebl:ecbull:eb-05c70032
    as

    Download full text from publisher

    File URL: http://www.accessecon.com/pubs/EB/2005/Volume3/EB-05C70032A.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Baron, David P. & Ferejohn, John A., 1989. "Bargaining in Legislatures," American Political Science Review, Cambridge University Press, vol. 83(4), pages 1181-1206, December.
    2. Okada, Akira, 1996. "A Noncooperative Coalitional Bargaining Game with Random Proposers," Games and Economic Behavior, Elsevier, vol. 16(1), pages 97-108, September.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Jean-Christophe Pereau, 2023. "The role of mediators in compensation negotiations between gainers and losers," Post-Print hal-04548608, HAL.
    2. Eraslan, Hulya & Merlo, Antonio, 2002. "Majority Rule in a Stochastic Model of Bargaining," Journal of Economic Theory, Elsevier, vol. 103(1), pages 31-48, March.
    3. Montero, M.P., 2002. "Two-Stage Bargaining with Reversible Coalitions : The Case of Apex Games," Other publications TiSEM 7dba0283-bc13-4f2c-8f5e-5, Tilburg University, School of Economics and Management.
    4. Ray, Debraj & Vohra, Rajiv, 2015. "Coalition Formation," Handbook of Game Theory with Economic Applications,, Elsevier.
    5. Joosung Lee, 2013. "Bargaining and Buyout," 2013 Papers ple701, Job Market Papers.
    6. Montero, Maria, 2002. "Non-cooperative bargaining in apex games and the kernel," Games and Economic Behavior, Elsevier, vol. 41(2), pages 309-321, November.
    7. Toshiji Miyakawa, 2009. "Existence and efficiency of a stationary subgame-perfect equilibrium in coalitional bargaining models with nonsuperadditive payoffs," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 39(2), pages 291-306, May.
    8. Okada, Akira, 2010. "The Nash bargaining solution in general n-person cooperative games," Journal of Economic Theory, Elsevier, vol. 145(6), pages 2356-2379, November.
    9. Okada, Akira & 岡田, 章, 2012. "The Stationary Equilibrium of Three-Person Cooperative Games: A Classification," Discussion Papers 2012-06, Graduate School of Economics, Hitotsubashi University.
    10. Miller, Luis & Montero, Maria & Vanberg, Christoph, 2018. "Legislative bargaining with heterogeneous disagreement values: Theory and experiments," Games and Economic Behavior, Elsevier, vol. 107(C), pages 60-92.
    11. Yildirim, Huseyin, 2007. "Proposal power and majority rule in multilateral bargaining with costly recognition," Journal of Economic Theory, Elsevier, vol. 136(1), pages 167-196, September.
    12. Maria Montero, 2008. "Altruism, Spite and Competition in Bargaining Games," Theory and Decision, Springer, vol. 65(2), pages 125-151, September.
    13. Gomes, Armando, 2022. "Coalitional bargaining games: A new concept of value and coalition formation," Games and Economic Behavior, Elsevier, vol. 132(C), pages 463-477.
    14. Akira Okada, 2015. "Cooperation and Institution in Games," The Japanese Economic Review, Japanese Economic Association, vol. 66(1), pages 1-32, March.
    15. Maria Montero, 2007. "Inequity Aversion May Increase Inequity," Economic Journal, Royal Economic Society, vol. 117(519), pages 192-204, March.
    16. Zapechelnyuk, Andriy, 2013. "Eliciting information from a committee," Journal of Economic Theory, Elsevier, vol. 148(5), pages 2049-2067.
    17. Maria Montero, 2023. "Bargaining in Legislatures: A New Donation Paradox," Studies in Choice and Welfare, in: Sascha Kurz & Nicola Maaser & Alexander Mayer (ed.), Advances in Collective Decision Making, pages 159-171, Springer.
    18. Maria Montero, 2010. "Bargaining in Legislatures: A New Donation Paradox," Discussion Papers 2010-19, The Centre for Decision Research and Experimental Economics, School of Economics, University of Nottingham.
    19. Duggan, John, 2017. "Existence of stationary bargaining equilibria," Games and Economic Behavior, Elsevier, vol. 102(C), pages 111-126.
    20. Kim, Chulyoung & Kim, Sang-Hyun & Lee, Jinhyuk & Lee, Joosung, 2022. "Strategic alliances in a veto game: An experimental study," European Journal of Political Economy, Elsevier, vol. 75(C).

    More about this item

    JEL classification:

    • C7 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory
    • C7 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ebl:ecbull:eb-05c70032. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: John P. Conley (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.