IDEAS home Printed from https://ideas.repec.org/p/hal/journl/halshs-00150523.html
   My bibliography  Save this paper

Bargaining in committees as an extension of Nash's bargaining theory

Author

Listed:
  • Annick Laruelle

    (CREM - Centre de recherche en économie et management - UNICAEN - Université de Caen Normandie - NU - Normandie Université - UR1 - Université de Rennes 1 - UNIV-RENNES - Université de Rennes - CNRS - Centre National de la Recherche Scientifique)

  • Federico Valenciano

    (Departamento de Economía Aplicada IV - UPV/EHU - Universidad del Pais Vasco / Euskal Herriko Unibertsitatea [Espagne])

Abstract

This paper addresses the following issue: if a set of agents bargain on a set of feasible alternatives ‘in the shadow' of a voting rule, that is, any agreement can be enforced if a ‘winning coalition' supports it, what general agreements are likely to arise? In other words: what influence can the voting rule used to settle (possibly nonunanimous) agreements have on the outcome of consensus? We model the situation as an extension of the Nash bargaining problem in which an arbitrary voting rule replaces unanimity. In this setting a natural extension of Nash's solution is characterized.

Suggested Citation

  • Annick Laruelle & Federico Valenciano, 2006. "Bargaining in committees as an extension of Nash's bargaining theory," Post-Print halshs-00150523, HAL.
  • Handle: RePEc:hal:journl:halshs-00150523
    DOI: 10.1016/j.jet.2005.05.004
    Note: View the original document on HAL open archive server: https://halshs.archives-ouvertes.fr/halshs-00150523
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below 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.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Rubinstein, Ariel, 1982. "Perfect Equilibrium in a Bargaining Model," Econometrica, Econometric Society, vol. 50(1), pages 97-109, January.
    2. Nash, John, 1953. "Two-Person Cooperative Games," Econometrica, Econometric Society, vol. 21(1), pages 128-140, April.
    3. Baron, David P. & Ferejohn, John A., 1989. "Bargaining in Legislatures," American Political Science Review, Cambridge University Press, vol. 83(4), pages 1181-1206, December.
    4. Kalai, Ehud & Smorodinsky, Meir, 1975. "Other Solutions to Nash's Bargaining Problem," Econometrica, Econometric Society, vol. 43(3), pages 513-518, May.
    5. Marco Mariotti, 1999. "Fair Bargains: Distributive Justice and Nash Bargaining Theory," Review of Economic Studies, Oxford University Press, vol. 66(3), pages 733-741.
    6. Peleg,Bezalel, 2008. "Game Theoretic Analysis of Voting in Committees," Cambridge Books, Cambridge University Press, number 9780521074650.
    7. Nash, John, 1950. "The Bargaining Problem," Econometrica, Econometric Society, vol. 18(2), pages 155-162, April.
    8. Hart, Sergiu, 1985. "An Axiomatization of Harsanyi's Nontransferable Utility Solution," Econometrica, Econometric Society, vol. 53(6), pages 1295-1313, November.
    9. Aumann, Robert J, 1985. "An Axiomatization of the Non-transferable Utility Value," Econometrica, Econometric Society, vol. 53(3), pages 599-612, May.
    10. Kalai, Ehud & Samet, Dov, 1985. "Monotonic Solutions to General Cooperative Games," Econometrica, Econometric Society, vol. 53(2), pages 307-327, March.
    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. McLean, Richard P., 2002. "Values of non-transferable utility games," Handbook of Game Theory with Economic Applications, in: R.J. Aumann & S. Hart (ed.), Handbook of Game Theory with Economic Applications, edition 1, volume 3, chapter 55, pages 2077-2120, Elsevier.
    13. John C. Harsanyi & Reinhard Selten, 1972. "A Generalized Nash Solution for Two-Person Bargaining Games with Incomplete Information," Management Science, INFORMS, vol. 18(5-Part-2), pages 80-106, January.
    14. Maschler, M & Owen, G, 1989. "The Consistent Shapley Value for Hyperplane Games," International Journal of Game Theory, Springer;Game Theory Society, vol. 18(4), pages 389-407.
    15. Hart, Sergiu & Mas-Colell, Andreu, 1996. "Bargaining and Value," Econometrica, Econometric Society, vol. 64(2), pages 357-380, March.
    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. Di Giannatale, Paolo & Passarelli, Francesco, 2013. "Voting chances instead of voting weights," Mathematical Social Sciences, Elsevier, vol. 65(3), pages 164-173.
    2. Maria Montero & Martin Sefton & Ping Zhang, 2008. "Enlargement and the balance of power: an experimental study," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 30(1), pages 69-87, January.
    3. Martin, Mathieu & Nganmeni, Zephirin & Tchantcho, Bertrand, 2017. "The Owen and Shapley spatial power indices: A comparison and a generalization," Mathematical Social Sciences, Elsevier, vol. 89(C), pages 10-19.
    4. Ching-jen Sun, 2018. "The bargaining correspondence: when Edgeworth meets Nash," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 51(2), pages 337-359, August.
    5. Le Breton, Michel & Lepelley, Dominique & Macé, Antonin & Merlin, Vincent, 2017. "Le mécanisme optimal de vote au sein du conseil des représentants d’un système fédéral," L'Actualité Economique, Société Canadienne de Science Economique, vol. 93(1-2), pages 203-248, Mars-Juin.
    6. P. Jean-Jacques Herings & A. Predtetchinski, 2016. "Bargaining under monotonicity constraints," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 62(1), pages 221-243, June.
    7. Laruelle, Annick & Valenciano, Federico, 2008. "Noncooperative foundations of bargaining power in committees and the Shapley-Shubik index," Games and Economic Behavior, Elsevier, vol. 63(1), pages 341-353, May.
    8. Encarnaciön Algaba & Sylvain Béal & Eric Rémila & Phillippe Solal, 2018. "Harsanyi power solutions for cooperative games on voting structures," Working Papers 2018-05, CRESE.
    9. Britz, V. & Herings, P.J.J. & Predtetchinski, A., 2010. "Theory of the firm: bargaining and competitive equilibrium," Research Memorandum 057, Maastricht University, Maastricht Research School of Economics of Technology and Organization (METEOR).
    10. Laruelle, Annick & Valenciano, Federico, 2009. "Cooperative bargaining foundations of the Shapley-Shubik index," Games and Economic Behavior, Elsevier, vol. 65(1), pages 242-255, January.
    11. Herings, P.J.J. & Predtetchinski, A., 2011. "Procedurally fair income taxation schemes," Research Memorandum 035, Maastricht University, Maastricht Research School of Economics of Technology and Organization (METEOR).
    12. Federico Valenciano & Annick Laruelle, 2005. "Bargaining In Committees Of Representatives: The Optimal Voting Rule," Working Papers. Serie AD 2005-24, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
    13. Volker Britz & P. Herings & Arkadi Predtetchinski, 2013. "A bargaining theory of the firm," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 54(1), pages 45-75, September.
    14. Ines Lindner, 2008. "The power of a collectivity to act in weighted voting games with many small voters," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 30(4), pages 581-601, May.
    15. Kurz, Sascha & Maaser, Nicola & Napel, Stefan, 2018. "Fair representation and a linear Shapley rule," Games and Economic Behavior, Elsevier, vol. 108(C), pages 152-161.
    16. Annick Laruelle & Federico Valenciano, 2010. "Egalitarianism and utilitarianism in committees of representatives," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 35(2), pages 221-243, July.
    17. Kawamori, Tomohiko, 2014. "A noncooperative foundation of the asymmetric Nash bargaining solution," Journal of Mathematical Economics, Elsevier, vol. 52(C), pages 12-15.

    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. Rebelo, S., 1997. "On the Determinant of Economic Growth," RCER Working Papers 443, University of Rochester - Center for Economic Research (RCER).
    2. Federico Valenciano & Annick Laruelle, 2004. "Bargaining, Voting, And Value," Working Papers. Serie AD 2004-17, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
    3. Akira Okada, 2015. "Cooperation and Institution in Games," The Japanese Economic Review, Japanese Economic Association, vol. 66(1), pages 1-32, March.
    4. Emililo Calvo, 2004. "Single NTU-value solutions," Game Theory and Information 0405004, University Library of Munich, Germany, revised 10 Jun 2004.
    5. Roberto Serrano, 2005. "Fifty years of the Nash program, 1953-2003," Investigaciones Economicas, Fundación SEPI, vol. 29(2), pages 219-258, May.
    6. Bergantinos, G. & Casas-Mendez, B. & Fiestras-Janeiro, M.G. & Vidal-Puga, J.J., 2007. "A solution for bargaining problems with coalition structure," Mathematical Social Sciences, Elsevier, vol. 54(1), pages 35-58, July.
    7. Gustavo Bergantiños & Balbina Casas- Méndez & Gloria Fiestras- Janeiro & Juan Vidal-Puga, 2005. "A Focal-Point Solution for Bargaining Problems with Coalition Structure," Game Theory and Information 0511006, University Library of Munich, Germany.
    8. Laruelle, Annick & Valenciano, Federico, 2008. "Noncooperative foundations of bargaining power in committees and the Shapley-Shubik index," Games and Economic Behavior, Elsevier, vol. 63(1), pages 341-353, May.
    9. Masanori Mitsutsune & Takanori Adachi, 2014. "Estimating noncooperative and cooperative models of bargaining: an empirical comparison," Empirical Economics, Springer, vol. 47(2), pages 669-693, September.
    10. Binmore, Ken & Osborne, Martin J. & Rubinstein, Ariel, 1992. "Noncooperative models of bargaining," Handbook of Game Theory with Economic Applications, in: R.J. Aumann & S. Hart (ed.), Handbook of Game Theory with Economic Applications, edition 1, volume 1, chapter 7, pages 179-225, Elsevier.
    11. Spulber, Daniel F., 2016. "Patent licensing and bargaining with innovative complements and substitutes," Research in Economics, Elsevier, vol. 70(4), pages 693-713.
    12. Zapechelnyuk, Andriy, 2013. "Eliciting information from a committee," Journal of Economic Theory, Elsevier, vol. 148(5), pages 2049-2067.
    13. Emilio Calvo, 2008. "Random marginal and random removal values," International Journal of Game Theory, Springer;Game Theory Society, vol. 37(4), pages 533-563, December.
    14. Joan-Maria Esteban & József Sákovics, 2005. "A Theory of Agreements in the Shadow of Conflict," Working Papers 255, Barcelona Graduate School of Economics.
    15. Eric van Damme, 1984. "The Nash Bargaining Solution is Optimal," Discussion Papers 597, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
    16. Serrano, Roberto & Shimomura, Ken-Ichi, 1998. "Beyond Nash Bargaining Theory: The Nash Set," Journal of Economic Theory, Elsevier, vol. 83(2), pages 286-307, December.
    17. Francesco Passarelli, 2007. "Asymmetric Bargaining," ISLA Working Papers 26, ISLA, Centre for research on Latin American Studies and Transition Economies, Universita' Bocconi, Milano, Italy, revised Jan 2007.
    18. Okada, Akira, 2010. "The Nash bargaining solution in general n-person cooperative games," Journal of Economic Theory, Elsevier, vol. 145(6), pages 2356-2379, November.
    19. Joan Esteban & József Sákovics, 2002. "Endogenous bargaining power," Economics Working Papers 644, Department of Economics and Business, Universitat Pompeu Fabra.
    20. Anbarci, Nejat & Feltovich, Nick, 2018. "How fully do people exploit their bargaining position? The effects of bargaining institution and the 50–50 norm," Journal of Economic Behavior & Organization, Elsevier, vol. 145(C), pages 320-334.

    More about this item

    Keywords

    Bargaining; Voting; Committees;
    All these keywords.

    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:hal:journl:halshs-00150523. 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: . General contact details of provider: https://hal.archives-ouvertes.fr/ .

    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: CCSD (email available below). General contact details of provider: https://hal.archives-ouvertes.fr/ .

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.