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Bargaining among groups: an axiomatic viewpoint

Author

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  • Suchan Chae

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  • Hervé Moulin

    ()

Abstract

We introduce a model of bargaining among groups, and characterize a family of solutions using a Consistency axiom and a few other invariance and monotonicity properties. For each solution in the family, there exists some constant alpha >= 0 such that the "bargaining power" of a group is proportional to calpha where c is the cardinality of the group.
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Suggested Citation

  • Suchan Chae & Hervé Moulin, 2010. "Bargaining among groups: an axiomatic viewpoint," International Journal of Game Theory, Springer;Game Theory Society, vol. 39(1), pages 71-88, March.
  • Handle: RePEc:spr:jogath:v:39:y:2010:i:1:p:71-88
    DOI: 10.1007/s00182-009-0157-6
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    References listed on IDEAS

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    3. Kalai, Ehud, 1977. "Proportional Solutions to Bargaining Situations: Interpersonal Utility Comparisons," Econometrica, Econometric Society, vol. 45(7), pages 1623-1630, October.
    4. Thomson, A., 1989. "The Consistency Principle," RCER Working Papers 192, University of Rochester - Center for Economic Research (RCER).
    5. Chae, Suchan & Heidhues, Paul, 2004. "A group bargaining solution," Mathematical Social Sciences, Elsevier, vol. 48(1), pages 37-53, July.
    6. Aumann, Robert J. & Maschler, Michael, 1985. "Game theoretic analysis of a bankruptcy problem from the Talmud," Journal of Economic Theory, Elsevier, vol. 36(2), pages 195-213, August.
    7. Byoung Heon Jun, 1989. "Non-cooperative Bargaining and Union Formation," Review of Economic Studies, Oxford University Press, vol. 56(1), pages 59-76.
    8. Lensberg, Terje, 1988. "Stability and the Nash solution," Journal of Economic Theory, Elsevier, vol. 45(2), pages 330-341, August.
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    Citations

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    Cited by:

    1. Haruo Imai & Naoki Watanabe, 2005. "On The Neutrality Of Coalition Formation In A Pure Bargaining Problem," The Japanese Economic Review, Japanese Economic Association, vol. 56(3), pages 352-362.
    2. Vidal-Puga, Juan, 2012. "The Harsanyi paradox and the “right to talk” in bargaining among coalitions," Mathematical Social Sciences, Elsevier, vol. 64(3), pages 214-224.
    3. Philip Bond & Hülya Eraslan, 2004. "Strategic Voting over Strategic Proposals, Second Version," PIER Working Paper Archive 07-014, Penn Institute for Economic Research, Department of Economics, University of Pennsylvania, revised 02 Jan 2007.
    4. Gustavo Bergantiños & Balbina Casas- Méndez & Gloria Fiestras- Janeiro & Juan Vidal-Puga, 2005. "A Focal-Point Solution for Bargaining Problems with Coalition Structure," Game Theory and Information 0511006, EconWPA.
    5. Federico Valenciano & Annick Laruelle, 2005. "Bargaining In Committees Of Representatives: The Optimal Voting Rule," Working Papers. Serie AD 2005-24, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
    6. Bergantinos, G. & Casas-Mendez, B. & Fiestras-Janeiro, M.G. & Vidal-Puga, J.J., 2007. "A solution for bargaining problems with coalition structure," Mathematical Social Sciences, Elsevier, vol. 54(1), pages 35-58, July.
    7. María Gómez-Rúa & Juan Vidal-Puga, 2014. "Bargaining and membership," TOP: An Official Journal of the Spanish Society of Statistics and Operations Research, Springer;Sociedad de Estadística e Investigación Operativa, vol. 22(2), pages 800-814, July.
    8. Kirchkamp, Oliver & Vollstädt, Ulrike, 2014. "Bilateral bargaining of heterogeneous groups—How significant are patient partners?," Journal of Economic Behavior & Organization, Elsevier, vol. 108(C), pages 433-441.

    More about this item

    Keywords

    Bargaining solution; Group bargaining; Joint bargaining paradox;

    JEL classification:

    • C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games

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