Bargaining and cooperation in strategic form games with suspended realizations of threats
The Hart-and-Mas-Colell bargaining model (Hart and Mas-Colell in J Eur Econ Assoc 8:7–33, 2010 ), which is based on strategic form games, is a very promising model possessing many beautiful features. Nevertheless, it is not flawless: threats used in this model may behave quite counter-intuitive, and the expected payoffs may not be consistent with the min-max solution in two-person-zero-sum games. If we postpone realizations of all threats to the end of the game, the two problems can be solved simultaneously. This is exactly the 2(a) model suggested by Hart and Mas-Colell in the last section of their paper. I prove that the new model can guarantee the existence of an SP equilibrium in the two player case. For the three-or-more-player case, unfortunately, it is shown through a counter-example that SP equilibrium may not exist. Copyright Springer-Verlag 2013
Volume (Year): 41 (2013)
Issue (Month): 2 (July)
|Contact details of provider:|| Web page: http://www.springer.com|
|Order Information:||Web: http://www.springer.com/economics/economic+theory/journal/355|
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.:
- Nash, John, 1953. "Two-Person Cooperative Games," Econometrica, Econometric Society, vol. 21(1), pages 128-140, April.
- Sergiu Hart, 2013.
World Scientific Book Chapters,in: Simple Adaptive Strategies From Regret-Matching to Uncoupled Dynamics, chapter 11, pages 253-287
World Scientific Publishing Co. Pte. Ltd..
- Sergiu Hart, 2004.
"A comparison of non-transferable utility values,"
Theory and Decision,
Springer, vol. 56(1), pages 35-46, April.
- Roberto Serrano, 2005. "Fifty years of the Nash program, 1953-2003," Investigaciones Economicas, Fundación SEPI, vol. 29(2), pages 219-258, May.
- Sergiu Hart & Andreu Mas-Colell, 2010. "Bargaining and Cooperation in Strategic Form Games," Journal of the European Economic Association, MIT Press, vol. 8(1), pages 7-33, March.
- Dhillon, Amrita & Mertens, Jean Francois, 1996.
"Perfect Correlated Equilibria,"
Journal of Economic Theory,
Elsevier, vol. 68(2), pages 279-302, February.
- Dhillon, A. & Mertens, J.F., "undated". "Perfect correlated equilibria," CORE Discussion Papers RP 1197, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- DHILLON, Amrita & MERTENS, Jean-François, 1992. "Perfect correlated equilibria," CORE Discussion Papers 1992039, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Hart, Sergiu & Mas-Colell, Andreu, 1996. "Bargaining and Value," Econometrica, Econometric Society, vol. 64(2), pages 357-380, March.
When requesting a correction, please mention this item's handle: RePEc:spr:sochwe:v:41:y:2013:i:2:p:337-358. 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: (Sonal Shukla)or (Rebekah McClure)
If references are entirely missing, you can add them using this form.