A Demand Adjustment Process
The aspiration approach to cooperative games, which has been studied by a number of authors, including Cross, Turbay, Albers, Selten and Bennett, presumes that players in a game bargain over their reservation prices, or aspirations. A number of aspiration-based solution concepts have been put forth, and aspiration solutions have been connected to non-cooperative bargaining models. Missing in this approach has been theory of how aspirations themselves arise. The present paper is an attempt to fill this gap. It describes a very general demand adjustment process, using the framework of set-valued dynamical systems developed by Maschler and Peleg. This demand adjustment process always converges; sufficient conditions are given in order that it converge to an aspiration, and that it converge in a finite number of steps.
(This abstract was borrowed from another version of this item.)
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.:
- Engl, Greg & Scotchmer, Suzanne, 1996.
"The core and the hedonic core: Equivalence and comparative statics,"
Journal of Mathematical Economics,
Elsevier, vol. 26(2), pages 209-248.
- Suzanne Scotchmer and Greg Engl., 1992. "The Core and the Hedonic Core: Equivalence and Comparative Statics," Economics Working Papers 92-197, University of California at Berkeley.
- Elaine Bennett, 1986. "Multilateral Bargaining Problems," UCLA Economics Working Papers 594, UCLA Department of Economics.
- Bennett, Elaine & Zame, William R, 1988. "Bargaining in Cooperative Games," International Journal of Game Theory, Springer;Game Theory Society, vol. 17(4), pages 279-300.
- Moldovanu, Benny & Winter, Eyal, 1994. "Core implementation and increasing returns to scale for cooperation," Journal of Mathematical Economics, Elsevier, vol. 23(6), pages 533-548, November.
- Moldovanu, Benny & Eyal Winter, 1993. "Core Implementation and Increasing Returns to Scale for Cooperation," Discussion Paper Serie B 289, University of Bonn, Germany.
- Sharkey, W.W., 1993. "A Characterization of Some Aspiration Solutions with an Application to Spatial Games," Papers 95, Bell Communications - Economic Research Group.
- Bennett, Elaine & Wooders, Myrna, 1979. "Income distribution and firm formation," Journal of Comparative Economics, Elsevier, vol. 3(3), pages 304-317, September.
- Benny Moldovanu & Eyal Winter, 1990. "Consistent demands for coalition formation in NTU games," Discussion Paper Serie B 147, University of Bonn, Germany.
- Moulin, H, 1990. "Cores and Large Cores When Population Varies," International Journal of Game Theory, Springer;Game Theory Society, vol. 19(2), pages 219-232. Full references (including those not matched with items on IDEAS)
When requesting a correction, please mention this item's handle: RePEc:cla:uclawp:724. 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: (David K. Levine)
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.