Reject and renegotiate: The Shapley value in multilateral bargaining
This paper investigates three distinctive and intuitive renegotiation bargaining protocols that all yield the Shapley value as the unique subgame perfect equilibrium outcome. These protocols, built on the multi-bidding procedure of Pérez-Castrillo and Wettstein (2001), allow more freedom in multilateral bargaining where rejected players can further negotiate and form coalitions. The self-duality of the Shapley value plays a key role in the second and third results. Moreover, these renegotiation protocols allow an actual play along the equilibrium path to restore the Shapley value in case of a ‘mistake’ made before.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 48 (2012)
Issue (Month): 6 ()
|Contact details of provider:|| Web page: http://www.elsevier.com/locate/jmateco|
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Yuan Ju & David Wettstein, 2009.
"Implementing cooperative solution concepts: a generalized bidding approach,"
Springer;Society for the Advancement of Economic Theory (SAET), vol. 39(2), pages 307-330, May.
- Yuan Ju & David Wettstein, 2006. "Implementing Cooperative Solution Concepts: a Generalized Bidding Approach," Keele Economics Research Papers KERP 2006/06, Centre for Economic Research, Keele University.
- Ju, Y. & Wettstein, D., 2006. "Implementing Cooperative Solution Concepts : A Generalized Bidding Approach," Discussion Paper 2006-42, Tilburg University, Center for Economic Research.
- Trockel,W., 1999.
"Integrating the Nash program into mechanism theory,"
Center for Mathematical Economics Working Papers
305, Center for Mathematical Economics, Bielefeld University.
- Walter Trockel, 2002. "Integrating the Nash program into mechanism theory," Review of Economic Design, Springer;Society for Economic Design, vol. 7(1), pages 27-43.
- David Pérez-Castrillo & David Wettstein, "undated".
"Bidding For The Surplus: A Non-Cooperative Approach To The Shapley Value,"
UFAE and IAE Working Papers
461.00, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
- Perez-Castrillo, David & Wettstein, David, 2001. "Bidding for the Surplus : A Non-cooperative Approach to the Shapley Value," Journal of Economic Theory, Elsevier, vol. 100(2), pages 274-294, October.
- Roberto Serrano, 2005.
"Fifty years of the Nash program, 1953-2003,"
Fundación SEPI, vol. 29(2), pages 219-258, May.
- Matthew O. Jackson, 2001.
"A crash course in implementation theory,"
Social Choice and Welfare,
Springer;The Society for Social Choice and Welfare, vol. 18(4), pages 655-708.
- Sun, N. & Trockel, W. & Yang, Z.F., 2004.
"Competitive Outcomes and Endogenous Coalition Formation in an n-Person Game,"
2004-93, Tilburg University, Center for Economic Research.
- Sun, Ning & Trockel, Walter & Yang, Zaifu, 2008. "Competitive outcomes and endogenous coalition formation in an n-person game," Journal of Mathematical Economics, Elsevier, vol. 44(7-8), pages 853-860, July.
- Krishna, V. & serrano, R., 1993.
"Perfect Equilibria of a Model of N-Person Noncooperative Bargaining,"
10-93-31, Pennsylvania State - Department of Economics.
- Krishna, Vijay & Serrano, Roberto, 1995. "Perfect Equilibria of a Model of N-Person Noncooperative Bargaining," International Journal of Game Theory, Springer;Game Theory Society, vol. 24(3), pages 259-72.
- Krishna, V. & Serrano, R., 1993. "Perfect Equilibria of a Model of N-Person Noncooperative Bargaining," Harvard Institute of Economic Research Working Papers 10, Harvard - Institute of Economic Research.
- David Pérez-Castrillo & David Wettstein, 2002. "Choosing Wisely: A Multibidding Approach," American Economic Review, American Economic Association, vol. 92(5), pages 1577-1587, December.
- Hart, Sergiu & Mas-Colell, Andreu, 1996.
"Bargaining and Value,"
Econometric Society, vol. 64(2), pages 357-380, March.
- Faruk Gul, 1999. "Efficiency and Immediate Agreement: A Reply to Hart and Levy," Econometrica, Econometric Society, vol. 67(4), pages 913-918, July.
- Nash, John, 1950. "The Bargaining Problem," Econometrica, Econometric Society, vol. 18(2), pages 155-162, April.
- Nash, John, 1953. "Two-Person Cooperative Games," Econometrica, Econometric Society, vol. 21(1), pages 128-140, April.
- Gul, Faruk, 1989. "Bargaining Foundations of Shapley Value," Econometrica, Econometric Society, vol. 57(1), pages 81-95, January.
When requesting a correction, please mention this item's handle: RePEc:eee:mateco:v:48:y:2012:i:6:p:431-436. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Shamier, Wendy)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.