IDEAS home Printed from https://ideas.repec.org/a/eee/matsoc/v105y2020icp34-40.html
   My bibliography  Save this article

A noncooperative bargaining game with endogenous protocol and partial breakdown

Author

Listed:
  • Yang, Guangjing
  • Sun, Hao
  • Hou, Dongshuang
  • Xu, Genjiu

Abstract

In this paper, we present a noncooperative sequential bargaining game with transferable utility. Instead of assuming exogenous protocol or random-proposer recognition, we provide a mechanism in which the protocol is generated endogenously. Besides, a partial breakdown probability is considered rather than a discount factor when the proposal is rejected by some player. We show that for each partial breakdown probability, stationary subgame perfect equilibria exist if the characteristic function game is totally balanced. Moreover, the outcomes of stationary subgame perfect equilibria in our model coincide with the core allocations.

Suggested Citation

  • Yang, Guangjing & Sun, Hao & Hou, Dongshuang & Xu, Genjiu, 2020. "A noncooperative bargaining game with endogenous protocol and partial breakdown," Mathematical Social Sciences, Elsevier, vol. 105(C), pages 34-40.
    • Handle: RePEc:eee:matsoc:v:105:y:2020:i:c:p:34-40
    DOI: 10.1016/j.mathsocsci.2020.04.003
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S016548962030041X
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.mathsocsci.2020.04.003?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Rubinstein, Ariel, 1982. "Perfect Equilibrium in a Bargaining Model," Econometrica, Econometric Society, vol. 50(1), pages 97-109, January.
    2. Okada, Akira, 2011. "Coalitional bargaining games with random proposers: Theory and application," Games and Economic Behavior, Elsevier, vol. 73(1), pages 227-235, September.
    3. Yildirim, Huseyin, 2007. "Proposal power and majority rule in multilateral bargaining with costly recognition," Journal of Economic Theory, Elsevier, vol. 136(1), pages 167-196, September.
    4. Kalyan Chatterjee & Bhaskar Dutia & Debraj Ray & Kunal Sengupta, 2013. "A Noncooperative Theory of Coalitional Bargaining," World Scientific Book Chapters, in: Bargaining in the Shadow of the Market Selected Papers on Bilateral and Multilateral Bargaining, chapter 5, pages 97-111, World Scientific Publishing Co. Pte. Ltd..
    5. Ray, Debraj & Vohra, Rajiv, 1999. "A Theory of Endogenous Coalition Structures," Games and Economic Behavior, Elsevier, vol. 26(2), pages 286-336, January.
    6. 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.
    7. Kóczy, László Á., 2009. "Sequential coalition formation and the core in the presence of externalities," Games and Economic Behavior, Elsevier, vol. 66(1), pages 559-565, May.
    8. Okada, Akira, 1996. "A Noncooperative Coalitional Bargaining Game with Random Proposers," Games and Economic Behavior, Elsevier, vol. 16(1), pages 97-108, September.
    9. Evans, Robert, 1997. "Coalitional Bargaining with Competition to Make Offers," Games and Economic Behavior, Elsevier, vol. 19(2), pages 211-220, May.
    10. Armando Gomes, 2005. "Multilateral Contracting with Externalities," Econometrica, Econometric Society, vol. 73(4), pages 1329-1350, July.
    11. Hart, Sergiu & Mas-Colell, Andreu, 1996. "Bargaining and Value," Econometrica, Econometric Society, vol. 64(2), pages 357-380, March.
    12. 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.
    13. Huibin Yan, 2003. "Noncooperative selection of the core," International Journal of Game Theory, Springer;Game Theory Society, vol. 31(4), pages 527-540, September.
    14. Roberto Serrano & Rajiv Vohra, 1997. "Non-cooperative implementation of the core," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 14(4), pages 513-525.
    15. Greenberg, Joseph, 1994. "Coalition structures," Handbook of Game Theory with Economic Applications, in: R.J. Aumann & S. Hart (ed.), Handbook of Game Theory with Economic Applications, edition 1, volume 2, chapter 37, pages 1305-1337, Elsevier.
    16. Bloch, Francis, 1996. "Sequential Formation of Coalitions in Games with Externalities and Fixed Payoff Division," Games and Economic Behavior, Elsevier, vol. 14(1), pages 90-123, May.
    17. Kyle Hyndman & Debraj Ray, 2007. "Coalition Formation with Binding Agreements," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 74(4), pages 1125-1147.
    18. Chih Chang & Cheng-Cheng Hu, 2017. "A non-cooperative interpretation of the kernel," International Journal of Game Theory, Springer;Game Theory Society, vol. 46(1), pages 185-204, March.
    19. Kawamori, Tomohiko & Miyakawa, Toshiji, 2016. "Nash bargaining solution under externalities," Mathematical Social Sciences, Elsevier, vol. 84(C), pages 1-7.
    20. Miyakawa, Toshiji, 2008. "Note on the equal split solution in an n-person noncooperative bargaining game," Mathematical Social Sciences, Elsevier, vol. 55(3), pages 281-291, May.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Akira Okada, 2015. "Cooperation and Institution in Games," The Japanese Economic Review, Japanese Economic Association, vol. 66(1), pages 1-32, March.
    2. Maria Montero, 2023. "Coalition Formation in Games with Externalities," Dynamic Games and Applications, Springer, vol. 13(2), pages 525-548, June.
    3. Ray, Debraj & Vohra, Rajiv, 2015. "Coalition Formation," Handbook of Game Theory with Economic Applications,, Elsevier.
    4. Marco Rogna, 2022. "The Burning Coalition Bargaining Model," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 59(3), pages 735-768, October.
    5. Kawamori, Tomohiko & Miyakawa, Toshiji, 2019. "Bargaining delay under partial breakdowns and externalities," Economics Letters, Elsevier, vol. 183(C), pages 1-1.
    6. Roberto Serrano, 2005. "Fifty years of the Nash program, 1953-2003," Investigaciones Economicas, Fundación SEPI, vol. 29(2), pages 219-258, May.
    7. Britz, Volker & Herings, P. Jean-Jacques & Predtetchinski, Arkadi, 2014. "On the convergence to the Nash bargaining solution for action-dependent bargaining protocols," Games and Economic Behavior, Elsevier, vol. 86(C), pages 178-183.
    8. Joosung Lee, 2013. "Bargaining and Buyout," 2013 Papers ple701, Job Market Papers.
    9. Messan Agbaglah, 2017. "Overlapping coalitions, bargaining and networks," Theory and Decision, Springer, vol. 82(3), pages 435-459, March.
    10. Roy Chowdhury, Prabal & Sengupta, Kunal, 2012. "Transparency, complementarity and holdout," Games and Economic Behavior, Elsevier, vol. 75(2), pages 598-612.
    11. Britz, V. & Herings, P.J.J. & Predtetchinski, A., 2012. "On the convergence to the Nash bargaining solution for endogenous bargaining protocols," Research Memorandum 030, Maastricht University, Maastricht Research School of Economics of Technology and Organization (METEOR).
    12. Akira Okada, 2023. "Dynamic bargaining with voluntary participation and externalities," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 75(2), pages 427-452, February.
    13. Gomes, Armando, 2015. "Multilateral negotiations and formation of coalitions," Journal of Mathematical Economics, Elsevier, vol. 59(C), pages 77-91.
    14. Kawamori, Tomohiko & Miyakawa, Toshiji, 2016. "Nash bargaining solution under externalities," Mathematical Social Sciences, Elsevier, vol. 84(C), pages 1-7.
    15. Roy Chowdhury, Prabal & Sengupta, Kunal, 2008. "Multi-person Bargaining With Complementarity: Is There Holdout?," MPRA Paper 11517, University Library of Munich, Germany.
    16. László Á. Kóczy, 2018. "Partition Function Form Games," Theory and Decision Library C, Springer, number 978-3-319-69841-0, September.
    17. Arnold Polanski & Emiliya Lazarova, 2015. "Dynamic multilateral markets," International Journal of Game Theory, Springer;Game Theory Society, vol. 44(4), pages 815-833, November.
    18. 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.
    19. Britz, Volker & Herings, P. Jean-Jacques & Predtetchinski, Arkadi, 2015. "Delay, multiplicity, and non-existence of equilibrium in unanimity bargaining games," Journal of Mathematical Economics, Elsevier, vol. 61(C), pages 192-202.
    20. Yildirim, Huseyin, 2007. "Proposal power and majority rule in multilateral bargaining with costly recognition," Journal of Economic Theory, Elsevier, vol. 136(1), pages 167-196, September.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:matsoc:v:105:y:2020:i:c:p:34-40. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/505565 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.