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The effect of choosing a proposer through a bidding procedure in implementing the Shapley value

Author

Listed:
  • Michela Chessa

    (GREDEG - Groupe de Recherche en Droit, Economie et Gestion - UNS - Université Nice Sophia Antipolis (1965 - 2019) - CNRS - Centre National de la Recherche Scientifique - UniCA - Université Côte d'Azur)

  • Nobuyuki Hanaki
  • Aymeric Lardon

  • Takashi Yamada

Abstract

We experimentally compare simplified versions of two mechanisms that implement the Shapley value as an (ex ante) equilibrium outcome of a noncooperative bargaining procedure: one proposed by Hart and Mas-Colell (1996, H-MC) and the other by Perez-Castrillo and Wettstein (2001, PC-W). While H-MC induces the Shapley value only on average, PC-W does so as a unique equilibrium outcome by introducing an additional bidding stage on top of H-MC. We investigate the effect of this additional bidding stage on the resulting outcomes such as the frequency of grand coalition formation, efficiency, and the distance between the realized allocation and the Shapley value. Our experiment shows that H-MC not only results in significantly greater efficiency than PC-W, but also that the average allocation is closer to the Shapley value for those groups that formed the grand coalition. This difference is because those proposers who won the bidding stage in PC-W tend to offer an allocation that favors themselves more often, when compared to allocations proposed by randomly selected proposers in H-MC, and such offers are more likely to be rejected.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Michela Chessa & Nobuyuki Hanaki & Aymeric Lardon & Takashi Yamada, 2022. "The effect of choosing a proposer through a bidding procedure in implementing the Shapley value," Post-Print hal-03907377, HAL.
    • Handle: RePEc:hal:journl:hal-03907377
    DOI: 10.1016/j.joep.2022.102568
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    Cited by:

    1. Michela Chessa & Nobuyuki Hanaki & Aymeric Lardon & Takashi Yamada, 2023. "An Experimental Nash Program:A Comparison of Structured versus Semi-structured Bargaining Experiments," ISER Discussion Paper 1221rrr, Institute of Social and Economic Research, The University of Osaka, revised Jul 2025.
    2. Bol, Damien & Blais, André & Coulombe, Maxime & Laslier, Jean-François & Pilet, Jean-Benoit, 2023. "Choosing an electoral rule: Values and self-interest in the lab," Journal of Economic Psychology, Elsevier, vol. 95(C).
    3. Michela Chessa & Nobuyuki Hanaki & Aymeric Lardon & Takashi Yamada, 2023. "An Experimental Nash Program: A Comparison of Non-Cooperative v.s. Cooperative Bargaining Experiments," ISER Discussion Paper 1221, Institute of Social and Economic Research, The University of Osaka.
    4. Michela Chessa & Nobuyuki Hanaki & Aymeric Lardon & Takashi Yamada, 2025. "An experimental Nash program: A comparison of structured versus semi-structured bargaining experiments," Post-Print hal-05441314, HAL.

    More about this item

    JEL classification:

    • C70 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - General
    • C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games
    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior

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