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Conflict leads to cooperation in demand bargaining

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  • Rozen, Kareen

Abstract

We consider a multilateral Nash demand game in which short-sighted players come to the bargaining table with requests for both coalition partners and the potentially generated resource. We prove that the resulting process converges with probability one to a state in which all players agree on a strictly self-enforcing division of resources (i.e., a strict core allocation). Highlighting group dynamics, we show how the myopic actions of players may lead to the break up of groups in the short run, but can ultimately bring about a situation from which a strictly self-enforcing allocation can be reached.

Suggested Citation

  • Rozen, Kareen, 2013. "Conflict leads to cooperation in demand bargaining," Journal of Economic Behavior & Organization, Elsevier, vol. 87(C), pages 35-42.
  • Handle: RePEc:eee:jeborg:v:87:y:2013:i:c:p:35-42
    DOI: 10.1016/j.jebo.2012.12.005
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    References listed on IDEAS

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    Cited by:

    1. Heinrich Nax & Bary Pradelski, 2015. "Evolutionary dynamics and equitable core selection in assignment games," International Journal of Game Theory, Springer;Game Theory Society, vol. 44(4), pages 903-932, November.
    2. Nax, Heinrich H. & Pradelski, Bary S. R., 2015. "Evolutionary dynamics and equitable core selection in assignment games," LSE Research Online Documents on Economics 65428, London School of Economics and Political Science, LSE Library.

    More about this item

    Keywords

    Demand bargaining; Strictly self-enforcing allocations; Strict core; Best response dynamics;

    JEL classification:

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

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