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The Nash bargaining solution in general n-person cooperative games

  • Okada, Akira

We present a noncooperative foundation for the Nash bargaining solution for an n-person cooperative game in strategic form. The Nash bargaining solution should be immune to any coalitional deviations. Our noncooperative approach yields a new core concept, called the Nash core, for a cooperative game based on a consistency principle. We prove that the Nash bargaining solution can be supported (in every subgame) by a stationary subgame perfect equilibrium of the bargaining game if and only if the Nash bargaining solution belongs to the Nash core.

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

Volume (Year): 145 (2010)
Issue (Month): 6 (November)
Pages: 2356-2379

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Handle: RePEc:eee:jetheo:v:145:y:2010:i:6:p:2356-2379
Contact details of provider: Web page: http://www.elsevier.com/locate/inca/622869

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