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Demand bargaining and proportional payoffs in majority games

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

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).

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

Volume (Year): 71 (2011)
Issue (Month): 2 (March)
Pages: 395-408

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Handle: RePEc:eee:gamebe:v:71:y:2011:i:2:p:395-408
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  1. Winter, Eyal, 1994. "The Demand Commitment Bargaining and Snowballing Cooperation," Economic Theory, Springer, vol. 4(2), pages 255-73, March.
  2. G Frechette & J Kagel & M Morelli, 2004. "Behavioral Identification in Coalition Bargaining: An Experimental Analysis of Demand Bargaining and Alternating Offers," Levine's Bibliography 122247000000000006, UCLA Department of Economics.
  3. Daniel Cardona-Coll & Francisco M. Mancera, 2000. "Demand bargaining in legislatures," Economic Theory, Springer, vol. 16(1), pages 163-180.
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  9. 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.
  10. (*), Y. Stephen Chiu & Ani Dasgupta, 1998. "On implementation via demand commitment games," International Journal of Game Theory, Springer, vol. 27(2), pages 161-189.
  11. Montero, Maria, 2006. "Noncooperative foundations of the nucleolus in majority games," Games and Economic Behavior, Elsevier, vol. 54(2), pages 380-397, February.
  12. 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.
  13. Ariel Rubinstein, 2010. "Perfect Equilibrium in a Bargaining Model," Levine's Working Paper Archive 661465000000000387, David K. Levine.
  14. Tasos Kalandrakis, 2004. "Proposal Rights and Political Power," Wallis Working Papers WP38, University of Rochester - Wallis Institute of Political Economy.
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  16. Daniel Diermeier & Hulya Eraslan & Antonio Merlo, 2003. "A Structural Model of Government Formation," Econometrica, Econometric Society, vol. 71(1), pages 27-70, January.
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