Bargaining, Efficiency and the Repeated Prisoners' Dilemna
The infinitely repeated prisoners' dilemma has a multiplicity of Pareto-unranked equilibria. This leads to a battle of the sexes problem of coordinating on a single efficient outcome. One natural method of achieving coordination is for the players to bargain over the set of possible equilibrium allocations. If players have different preferences over cooperative bargaining solutions, it is reasonable to imagin that agents randomize over their favorite choices. This paper asks the following question: do the players risk choosing an inefficient outcome by resorting to such randomizations? In general, randomizations over points in a convex set yields interior points. We show, however, that if the candidate solutions are the two most frequently used the Nash and Kalai-Smorodinsky solutions then for any prisoners'' dilemma, this procedure guarantees coordination of an efficient outcome.
(This abstract was borrowed from another version of this item.)
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:||1992|
|Date of revision:|
|Contact details of provider:|| Postal: Bell Communications Research; Economic Research Group, 445 South street Morristown, NJ 07962-1910, USA|
When requesting a correction, please mention this item's handle: RePEc:fth:bellco:91. 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: (Thomas Krichel)
If references are entirely missing, you can add them using this form.