Bargaining In Networks And The Myerson Value
We focus on a multiperson bargaining situation where the negotiation possibilities for the players are represented by a graph, that is, two players can negotiate directly with each other if and only if they are linked directly in the graph. The value of cooperation among players is given by a TU game. For the case where the graph is a tree and the TU game is strictly convex we present a noncooperative bargaining procedure, consisting of a sequence of bilateral negotiations, for which the unique subgame perfect equilibrium outcome coincides with the Myerson value of the induced graph-restricted game. In each bilateral negotiation, the corresponding pair of players bargains about the difference in payoffs to be received at the end. At the beginning of such negotiation there is a bidding stage in which both players announce prices. The player with the highest price becomes the proposer and makes a take-it-or-leave-it offer in terms of difference in payoffs to the other player. If the proposal is rejected, the proposer pays his announced price to the other player, after which this particular link is eliminated from the graph and the mechanism starts all over again for the remaining graph.
|Date of creation:||Nov 2001|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: +34-91 6249594
Fax: +34-91 6249329
Web page: http://www.eco.uc3m.es
More information through EDIRC
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.:
- Winter, Eyal, 1994. "The Demand Commitment Bargaining and Snowballing Cooperation," Economic Theory, Springer, vol. 4(2), pages 255-73, March.
- 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.
- David Pérez-Castrillo & David Wettstein, . "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).
- Jackson, Matthew O. & Wolinsky, Asher, 1996.
"A Strategic Model of Social and Economic Networks,"
Journal of Economic Theory,
Elsevier, vol. 71(1), pages 44-74, October.
- Matthew O. Jackson & Asher Wolinsky, 1994. "A Strategic Model of Social and Economic Networks," Discussion Papers 1098, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
- Matthew O. Jackson & Asher Wolinsky, 1995. "A Strategic Model of Social and Economic Networks," Discussion Papers 1098R, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
- Gul, Faruk, 1989. "Bargaining Foundations of Shapley Value," Econometrica, Econometric Society, vol. 57(1), pages 81-95, January.
- Roger B. Myerson, 1976. "Graphs and Cooperation in Games," Discussion Papers 246, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
- (*), Y. Stephen Chiu & Ani Dasgupta, 1998. "On implementation via demand commitment games," International Journal of Game Theory, Springer, vol. 27(2), pages 161-189.
- Hart, Sergiu & Mas-Colell, Andreu, 1996.
"Bargaining and Value,"
Econometric Society, vol. 64(2), pages 357-80, March.
- Moulin, H., 1984. "Implementing the Kalai-Smorodinsky bargaining solution," Journal of Economic Theory, Elsevier, vol. 33(1), pages 32-45, June.
- Suresh Mutuswami & David Pérez-Castrillo & David Wettstein, 2001. "Bidding for the Surplus: Realizing Efficient Outcomes in General Economic Environments," UFAE and IAE Working Papers 479.01, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
When requesting a correction, please mention this item's handle: RePEc:cte:werepe:we016121. 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: ()
If references are entirely missing, you can add them using this form.