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Non-cooperative support for the asymmetric Nash bargaining solution

  • Britz, Volker
  • Herings, P. Jean-Jacques
  • Predtetchinski, Arkadi

We study a model of non-cooperative multilateral unanimity bargaining on a full-dimensional payoff set. The probability distribution with which the proposing player is selected in each bargaining round follows an irreducible Markov process. If a proposal is rejected, negotiations break down with an exogenous probability and the next round starts with the complementary probability. As the risk of exogenous breakdown vanishes, stationary subgame perfect equilibrium payoffs converge to the weighted Nash bargaining solution with the stationary distribution of the Markov process as the weight vector.

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Article provided by Elsevier in its journal Journal of Economic Theory.

Volume (Year): 145 (2010)
Issue (Month): 5 (September)
Pages: 1951-1967

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Handle: RePEc:eee:jetheo:v:145:y:2010:i:5:p:1951-1967
Contact details of provider: Web page: http://www.elsevier.com/locate/inca/622869

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