IDEAS home Printed from https://ideas.repec.org/p/fem/femwpa/2013.63.html
   My bibliography  Save this paper

Bargaining and Power

Author

Listed:
  • Dominik Karos

    (Department of Economics and Statistics, Saarland University)

Abstract

Given a simple game, a power configuration specifies the power of each player in each winning coalition. We introduce a new power configuration which takes into account bargaining among players in coalitions. We show that under very weak conditions on a bargaining solution there is a power configuration which is stable with respect to renegotiations. We further show that given this power configuration there is a coalition which is both internally and Nash stable. We consider two different bargaining solutions on apex games and show under which conditions there are core stable coalitions. Finally, we investigate how infeasible coalition might affect the outcome and apply our model to the German parliament.

Suggested Citation

  • Dominik Karos, 2013. "Bargaining and Power," Working Papers 2013.63, Fondazione Eni Enrico Mattei.
    • Handle: RePEc:fem:femwpa:2013.63
    as

    Download full text from publisher

    File URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2013-063.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Kalai, Ehud, 1977. "Proportional Solutions to Bargaining Situations: Interpersonal Utility Comparisons," Econometrica, Econometric Society, vol. 45(7), pages 1623-1630, October.
    2. Chun, Youngsub & Thomson, William, 1992. "Bargaining problems with claims," Mathematical Social Sciences, Elsevier, vol. 24(1), pages 19-33, August.
    3. Bogomolnaia, Anna & Jackson, Matthew O., 2002. "The Stability of Hedonic Coalition Structures," Games and Economic Behavior, Elsevier, vol. 38(2), pages 201-230, February.
    4. Geoffroy de Clippel & Roberto Serrano, 2008. "Marginal Contributions and Externalities in the Value," Econometrica, Econometric Society, vol. 76(6), pages 1413-1436, November.
    5. Dinko Dimitrov & Claus-Jochen Haake, 2006. "Government versus Opposition: Who Should be Who in the 16th German Bundestag?," Journal of Economics, Springer, vol. 89(2), pages 115-128, November.
    6. Milchtaich, Igal & Winter, Eyal, 2002. "Stability and Segregation in Group Formation," Games and Economic Behavior, Elsevier, vol. 38(2), pages 318-346, February.
    7. Dimitrov, Dinko & Haake, Claus-Jochen, 2008. "Stable governments and the semistrict core," Games and Economic Behavior, Elsevier, vol. 62(2), pages 460-475, March.
    8. Dutta, Bhaskar & Ehlers, Lars & Kar, Anirban, 2010. "Externalities, potential, value and consistency," Journal of Economic Theory, Elsevier, vol. 145(6), pages 2380-2411, November.
    9. Dinko Dimitrov & Claus-Jochen Haake, 2008. "A note on the paradox of smaller coalitions," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 30(4), pages 571-579, May.
    10. Nash, John, 1950. "The Bargaining Problem," Econometrica, Econometric Society, vol. 18(2), pages 155-162, April.
    11. Shapley, L. S. & Shubik, Martin, 1954. "A Method for Evaluating the Distribution of Power in a Committee System," American Political Science Review, Cambridge University Press, vol. 48(3), pages 787-792, September.
    12. Dreze, J H & Greenberg, J, 1980. "Hedonic Coalitions: Optimality and Stability," Econometrica, Econometric Society, vol. 48(4), pages 987-1003, May.
    13. Dominik Karos, 2012. "Coalition Formation in Generalized Apex Games," Working Papers 2012.38, Fondazione Eni Enrico Mattei.
    14. Hart, Sergiu & Kurz, Mordecai, 1983. "Endogenous Formation of Coalitions," Econometrica, Econometric Society, vol. 51(4), pages 1047-1064, July.
    15. 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.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Dominik Karos, 2016. "A note on monotonic power indices, smaller coalitions, and new members," Theory and Decision, Springer, vol. 81(1), pages 89-100, June.
    2. Dominik Karos, 2015. "Stable partitions for games with non-transferable utilities and externalities," Economics Series Working Papers 741, University of Oxford, Department of Economics.
    3. Dominik Karos, 2016. "Stable partitions for games with non-transferable utility and externalities," International Journal of Game Theory, Springer;Game Theory Society, vol. 45(4), pages 817-838, November.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Dominik Karos, 2015. "Stable partitions for games with non-transferable utilities and externalities," Economics Series Working Papers 741, University of Oxford, Department of Economics.
    2. Dominik Karos, 2016. "Stable partitions for games with non-transferable utility and externalities," International Journal of Game Theory, Springer;Game Theory Society, vol. 45(4), pages 817-838, November.
    3. Karos, Dominik, 2014. "Coalition formation in general apex games under monotonic power indices," Games and Economic Behavior, Elsevier, vol. 87(C), pages 239-252.
    4. Dominik Karos, 2013. "Coalition Formation in General Apex Games," Economics Series Working Papers 680, University of Oxford, Department of Economics.
    5. Michel Le Breton & Karine Van Der Straeten, 2017. "Alliances Électorales et Gouvernementales : La Contribution de la Théorie des Jeux Coopératifs à la Science Politique," Revue d'économie politique, Dalloz, vol. 127(4), pages 637-736.
    6. Dietzenbacher, Bas & Yanovskaya, Elena, 2023. "The equal split-off set for NTU-games," Mathematical Social Sciences, Elsevier, vol. 121(C), pages 61-67.
    7. Thomson, William, 2003. "Axiomatic and game-theoretic analysis of bankruptcy and taxation problems: a survey," Mathematical Social Sciences, Elsevier, vol. 45(3), pages 249-297, July.
    8. László Á. Kóczy, 2018. "Partition Function Form Games," Theory and Decision Library C, Springer, number 978-3-319-69841-0, March.
    9. Dominik Karos, 2012. "Coalition Formation in Generalized Apex Games," Working Papers 2012.38, Fondazione Eni Enrico Mattei.
    10. Emiliya Lazarova & Dinko Dimitrov, 2013. "Status-seeking in hedonic games with heterogeneous players," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 40(4), pages 1205-1229, April.
    11. Juarez, Ruben & Ko, Chiu Yu & Xue, Jingyi, 2018. "Sharing sequential values in a network," Journal of Economic Theory, Elsevier, vol. 177(C), pages 734-779.
    12. Dimitrov, Dinko & Haake, Claus-Jochen, 2011. "Coalition formation in simple Games. the semistrict core," Center for Mathematical Economics Working Papers 378, Center for Mathematical Economics, Bielefeld University.
    13. Mikel Alvarez-Mozos & José María Alonso-Meijide & María Gloria Fiestras-Janeiro, 2016. "The Shapley-Shubik Index in the Presence of Externalities," UB School of Economics Working Papers 2016/342, University of Barcelona School of Economics.
    14. Wulf Gaertner & Richard Bradley & Yongsheng Xu & Lars Schwettmann, 2019. "Against the proportionality principle: Experimental findings on bargaining over losses," PLOS ONE, Public Library of Science, vol. 14(7), pages 1-18, July.
    15. Jens Leth Hougaard & Mich Tvede, 2010. "n-Person Nonconvex Bargaining: Efficient Proportional Solutions," MSAP Working Paper Series 02_2010, University of Copenhagen, Department of Food and Resource Economics.
    16. Guillaume Haeringer, 2000. "Stable Coalition Structures with Fixed Decision Schme," UFAE and IAE Working Papers 471.00, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
    17. José-Manuel Giménez-Gómez & António Osório & Josep E. Peris, 2015. "From Bargaining Solutions to Claims Rules: A Proportional Approach," Games, MDPI, vol. 6(1), pages 1-7, March.
    18. Ray, Debraj & Vohra, Rajiv, 2015. "Coalition Formation," Handbook of Game Theory with Economic Applications,, Elsevier.
    19. Herrero, Carmen & Maschler, Michael & Villar, Antonio, 1999. "Individual rights and collective responsibility: the rights-egalitarian solution," Mathematical Social Sciences, Elsevier, vol. 37(1), pages 59-77, January.
    20. Majumdar, Dipjyoti, 2004. "An axiomatic characterization of Bayes' Rule," Mathematical Social Sciences, Elsevier, vol. 47(3), pages 261-273, May.

    More about this item

    Keywords

    Coalition Formation; Power; Bargaining;
    All these keywords.

    JEL classification:

    • C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games
    • D71 - Microeconomics - - Analysis of Collective Decision-Making - - - Social Choice; Clubs; Committees; Associations

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:fem:femwpa:2013.63. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Alberto Prina Cerai (email available below). General contact details of provider: https://edirc.repec.org/data/feemmit.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.