Evolutionary Stability in Alternating-Offers Bargaining Games
This paper characterizes modified evolutionarily stable strategies (messes) in Rubinstein's alternating-offers, infinite-horizon bargaining game. The mess concept modifies the idea of a neutrally stable strategy by favoring a simple strategy over a more complex strategy when both yield the same payoff. We show that if strategy A is a mess, then the use of A by both players is a Nash equilibriumin which an agreement is achieved immediately, and neither player would be willing to delay the agreement by one period in order to achieve the other player's share of the surplus. Each player's share of the surplus is then bounded between the shares received by the two players in the unique subgame-perfect equilibrium of Rubinstein's game. As the probability of a breakdown in negotiations becomes small (or discount factors become large), these bounds collapse on the subgame-perfect equilibrium. These results continue to hold when offers must be made in multiples of a smallest monetary unit.
To our knowledge, this item is not available for
download. To find whether it is available, there are three
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
|Date of creation:|
|Date of revision:|
|Contact details of provider:|| Web page: http://else.econ.ucl.ac.uk/|
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:els:esrcls:041. 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: (s. malkani)The email address of this maintainer does not seem to be valid anymore. Please ask s. malkani to update the entry or send us the correct address
If references are entirely missing, you can add them using this form.