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The demand bargaining set: general characterization and application to majority games

  • Morelli, Massimo
  • Montero, Maria

The cooperative solution concept introduced here, the demand bargaining set, contains the core and is included in the Zhou bargaining set, eliminating the “dominated” coalition structures. The demand vectors belonging to the demand bargaining set are self-stable. In the class of constant-sum homogeneous weighted majority games the demand bargaining set is non-empty and predicts a unique demand vector, namely a proportional distribution within minimal winning coalitions. The noncooperative implementation of the demand bargaining set is obtained for all the games that satisfy the one-stage property.

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Article provided by Elsevier in its journal Games and Economic Behavior.

Volume (Year): 42 (2003)
Issue (Month): 1 (January)
Pages: 137-155

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Handle: RePEc:eee:gamebe:v:42:y:2003:i:1:p:137-155
Contact details of provider: Web page: http://www.elsevier.com/locate/inca/622836

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  1. Zhou Lin, 1994. "A New Bargaining Set of an N-Person Game and Endogenous Coalition Formation," Games and Economic Behavior, Elsevier, vol. 6(3), pages 512-526, May.
  2. Sudhoelter,P. & Potters,J.A.M., 1999. "The semireactive bargaining set of a cooperative game," Working Papers 313, Bielefeld University, Center for Mathematical Economics.
  3. Massimo Morelli & Maria Montero, 2001. "The Stable Demand Set General Characterization and Application to Majority Games," Working Papers 01-03, Ohio State University, Department of Economics.
  4. Daniel Granot & Michael Maschler, 1997. "The Reactive Bargaining Set: Structure, Dynamics and Extension to NTU Games," International Journal of Game Theory, Springer, vol. 26(1), pages 75-95.
  5. Maschler, Michael, 1992. "The bargaining set, kernel, and nucleolus," Handbook of Game Theory with Economic Applications, in: R.J. Aumann & S. Hart (ed.), Handbook of Game Theory with Economic Applications, edition 1, volume 1, chapter 18, pages 591-667 Elsevier.
  6. Perez-Castrillo, David & Wettstein, David, 2000. "Implementation of Bargaining Sets via Simple Mechanisms," Games and Economic Behavior, Elsevier, vol. 31(1), pages 106-120, April.
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