IDEAS home Printed from https://ideas.repec.org/a/eee/gamebe/v71y2011i2p395-408.html
   My bibliography  Save this article

Demand bargaining and proportional payoffs in majority games

Author

Listed:
  • Montero, Maria
  • Vidal-Puga, Juan J.

Abstract

We study a majoritarian bargaining model in which players make payoff demands in decreasing order of voting weight. The unique subgame perfect equilibrium outcome is such that the minimal winning coalition of the players that move first forms with payoffs proportional to the voting weights. This result advances previous analysis in terms of one or more of the following: a) the simplicity of the extensive form (finite horizon with a predetermined order of moves); b) the range of the majority games covered; c) the equilibrium concept (subgame perfect equilibrium is sufficient for a unique prediction).

Suggested Citation

  • Montero, Maria & Vidal-Puga, Juan J., 2011. "Demand bargaining and proportional payoffs in majority games," Games and Economic Behavior, Elsevier, vol. 71(2), pages 395-408, March.
  • Handle: RePEc:eee:gamebe:v:71:y:2011:i:2:p:395-408
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0899-8256(10)00076-X
    Download Restriction: Full text for ScienceDirect subscribers only

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Rubinstein, Ariel, 1982. "Perfect Equilibrium in a Bargaining Model," Econometrica, Econometric Society, vol. 50(1), pages 97-109, January.
    2. repec:cup:apsrev:v:83:y:1989:i:04:p:1181-1206_08 is not listed on IDEAS
    3. Guillaume Fréchette & John H. Kagel & Massimo Morelli, 2005. "Behavioral Identification in Coalitional Bargaining: An Experimental Analysis of Demand Bargaining and Alternating Offers," Econometrica, Econometric Society, vol. 73(6), pages 1893-1937, November.
    4. Daniel Diermeier & Hulya Eraslan & Antonio Merlo, 2003. "A Structural Model of Government Formation," Econometrica, Econometric Society, vol. 71(1), pages 27-70, January.
    5. Juan J. Vidal-Puga, 2004. "Bargaining with commitments," International Journal of Game Theory, Springer;Game Theory Society, vol. 33(1), pages 129-144, January.
    6. Kalyan Chatterjee & Bhaskar Dutia & Debraj Ray & Kunal Sengupta, 2013. "A Noncooperative Theory of Coalitional Bargaining," World Scientific Book Chapters,in: Bargaining in the Shadow of the Market Selected Papers on Bilateral and Multilateral Bargaining, chapter 5, pages 97-111 World Scientific Publishing Co. Pte. Ltd..
    7. Mika Widgrén & Stefan Napel, 2001. "Inferior players in simple games," International Journal of Game Theory, Springer;Game Theory Society, vol. 30(2), pages 209-220.
    8. Diermeier, Daniel & Merlo, Antonio, 2004. "An empirical investigation of coalitional bargaining procedures," Journal of Public Economics, Elsevier, vol. 88(3-4), pages 783-797, March.
    9. Tasos Kalandrakis, 2004. "Proposal Rights and Political Power," Wallis Working Papers WP38, University of Rochester - Wallis Institute of Political Economy.
    10. Daniel Cardona-Coll & Francisco M. Mancera, 2000. "Demand bargaining in legislatures," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 16(1), pages 163-180.
    11. repec:cup:apsrev:v:93:y:1999:i:04:p:809-820_21 is not listed on IDEAS
    12. Morelli, Massimo & Montero, Maria, 2003. "The demand bargaining set: general characterization and application to majority games," Games and Economic Behavior, Elsevier, vol. 42(1), pages 137-155, January.
    13. van Damme, E.E.C. & Bennet, E., 1991. "Demand commitment bargaining : The case of apex games," Other publications TiSEM a2976a1b-d490-459d-8d59-a, Tilburg University, School of Economics and Management.
    14. Winter, Eyal, 1994. "The Demand Commitment Bargaining and Snowballing Cooperation," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 4(2), pages 255-273, March.
    15. Stéphane Rottier & Francis Bloch, 2002. "Agenda control in coalition formation," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 19(4), pages 769-788.
    16. Montero, Maria, 2006. "Noncooperative foundations of the nucleolus in majority games," Games and Economic Behavior, Elsevier, vol. 54(2), pages 380-397, February.
    17. (*), Y. Stephen Chiu & Ani Dasgupta, 1998. "On implementation via demand commitment games," International Journal of Game Theory, Springer;Game Theory Society, vol. 27(2), pages 161-189.
    18. 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.
    19. repec:cup:apsrev:v:82:y:1988:i:02:p:405-422_08 is not listed on IDEAS
    20. Norman, Peter, 2002. "Legislative Bargaining and Coalition Formation," Journal of Economic Theory, Elsevier, vol. 102(2), pages 322-353, February.
    21. Banks, Jeffrey s. & Duggan, John, 2000. "A Bargaining Model of Collective Choice," American Political Science Review, Cambridge University Press, vol. 94(01), pages 73-88, March.
    22. Austen-Smith, David & Banks, Jeffrey, 1988. "Elections, Coalitions, and Legislative Outcomes," American Political Science Review, Cambridge University Press, vol. 82(02), pages 405-422, June.
    23. repec:cup:apsrev:v:72:y:1978:i:02:p:599-615_15 is not listed on IDEAS
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Breitmoser, Yves & Tan, Jonathan H.W., 2013. "Reference dependent altruism in demand bargaining," Journal of Economic Behavior & Organization, Elsevier, vol. 92(C), pages 127-140.
    2. M. Puy, 2013. "Stable coalition governments: the case of three political parties," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 40(1), pages 65-87, January.
    3. Flavio Pressacco & Giacomo Plazzotta & Laura Ziani, 2014. "Twin relationships in Parsimonious Games: some results," Working Papers hal-00950076, HAL.
    4. Maria Montero & Juan Vidal-Puga, 2012. "A Violation of Monotonicity in a Noncooperative Setting," Discussion Papers 2012-04, The Centre for Decision Research and Experimental Economics, School of Economics, University of Nottingham.
    5. Breitmoser, Yves, 2011. "Binomial menu auctions in government formation," MPRA Paper 28576, University Library of Munich, Germany.
    6. Joosung Lee, 2013. "Bargaining and Buyout," 2013 Papers ple701, Job Market Papers.
    7. Breitmoser, Yves & Tan, Jonathan H.W., 2011. "Ultimata bargaining: generosity without social motives," MPRA Paper 33613, University Library of Munich, Germany.

    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:eee:gamebe:v:71:y:2011:i:2:p:395-408. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dana Niculescu). General contact details of provider: http://www.elsevier.com/locate/inca/622836 .

    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 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.