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The Nash bargaining solution in general n-person cooperative games

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  • Okada, Akira

Abstract

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.

Suggested Citation

  • Okada, Akira, 2010. "The Nash bargaining solution in general n-person cooperative games," Journal of Economic Theory, Elsevier, vol. 145(6), pages 2356-2379, November.
  • Handle: RePEc:eee:jetheo:v:145:y:2010:i:6:p:2356-2379
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Okada, Akira, 2016. "A non-cooperative bargaining theory with incomplete information: Verifiable types," Journal of Economic Theory, Elsevier, vol. 163(C), pages 318-341.
    2. Masanori Mitsutsune & Takanori Adachi, 2014. "Estimating noncooperative and cooperative models of bargaining: an empirical comparison," Empirical Economics, Springer, vol. 47(2), pages 669-693, September.
    3. Zapechelnyuk, Andriy, 2013. "Eliciting information from a committee," Journal of Economic Theory, Elsevier, vol. 148(5), pages 2049-2067.
    4. Matsushima, Noriaki & Shinohara, Ryusuke, 2014. "What factors determine the number of trading partners?," Journal of Economic Behavior & Organization, Elsevier, vol. 106(C), pages 428-441.
    5. Akira Okada, 2015. "Cooperation and Institution in Games," The Japanese Economic Review, Japanese Economic Association, vol. 66(1), pages 1-32, March.
    6. repec:eee:matsoc:v:93:y:2018:i:c:p:90-100 is not listed on IDEAS
    7. Kawamori, Tomohiko, 2014. "A noncooperative foundation of the asymmetric Nash bargaining solution," Journal of Mathematical Economics, Elsevier, vol. 52(C), pages 12-15.
    8. Okada, Akira, 2012. "The Stationary Equilibrium of Three-Person Cooperative Games: A Classification," Discussion Papers 2012-06, Graduate School of Economics, Hitotsubashi University.
    9. Kawamori, Tomohiko & Miyakawa, Toshiji, 2016. "Nash bargaining solution under externalities," Mathematical Social Sciences, Elsevier, vol. 84(C), pages 1-7.
    10. Akira Okada, 2014. "The stationary equilibrium of three-person coalitional bargaining games with random proposers: a classification," International Journal of Game Theory, Springer;Game Theory Society, vol. 43(4), pages 953-973, November.
    11. Venkat Venkatasubramanian & Yu Luo, 2018. "How much income inequality is fair? Nash bargaining solution and its connection to entropy," Papers 1806.05262, arXiv.org.
    12. repec:eee:matsoc:v:91:y:2018:i:c:p:1-5 is not listed on IDEAS

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