Coalitional Bargaining Games with Random Proposers: Theory and Application
We consider a noncooperative coalitional bargaining game with random proposers. In a general case that the recognition probability is arbitrary anｄplayers have different discount factors for future payoffs, the existence of a stationary subgame perfect equilibrium (SSPE) is proved, and the condition for the grand coalition to be formed is provided. We also prove that the grand-coalition SSPE is a unique symmetric SSPE for any discount factor in a symmetric game with nonempty core. In the last part of the paper, we apply the bargaining model to a production economy with one employer and multiple workers. When players are sufficiently patient, the economy has a unique SSPE payoff. The equilibrium allocation is compared with cooperative solutions such as the core, the Shapley value and the nucleolus. The SSPE payoff and the nucleolus have similar distributional properties.
|Date of creation:||Sep 2007|
|Contact details of provider:|| Phone: +81-42-580-8000|
Web page: http://www.econ.hit-u.ac.jp/
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Baron David & Kalai Ehud, 1993. "The Simplest Equilibrium of a Majority-Rule Division Game," Journal of Economic Theory, Elsevier, vol. 61(2), pages 290-301, December.
- Lars A. Stole & Jeffrey Zwiebel, 1996. "Intra-firm Bargaining under Non-binding Contracts," Review of Economic Studies, Oxford University Press, vol. 63(3), pages 375-410.
- Olivier Compte & Philippe Jehiel, 2010.
"The Coalitional Nash Bargaining Solution,"
Econometric Society, vol. 78(5), pages 1593-1623, 09.
- Okada, Akira, 1996. "A Noncooperative Coalitional Bargaining Game with Random Proposers," Games and Economic Behavior, Elsevier, vol. 16(1), pages 97-108, September.
- Eraslan, H. & Merlo, A., 2000.
"Majority Rule in a Stochastic Model of Bargaining,"
00-05, C.V. Starr Center for Applied Economics, New York University.
- 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.
- Norman, Peter, 2002.
"Legislative Bargaining and Coalition Formation,"
Journal of Economic Theory,
Elsevier, vol. 102(2), pages 322-353, February.
- Montero, Maria, 2006. "Noncooperative foundations of the nucleolus in majority games," Games and Economic Behavior, Elsevier, vol. 54(2), pages 380-397, February.
- Montero, Maria, 2002.
"Non-cooperative bargaining in apex games and the kernel,"
Games and Economic Behavior,
Elsevier, vol. 41(2), pages 309-321, November.
- Montero, M.P., 1999. "Noncooperative Bargaining in Apex Games and the Kernel," Discussion Paper 1999-61, Tilburg University, Center for Economic Research.
- Shaked, Avner & Sutton, John, 1984. "Involuntary Unemployment as a Perfect Equilibrium in a Bargaining Model," Econometrica, Econometric Society, vol. 52(6), pages 1351-1364, November.
- Gomes, Armando R & Jehiel, Philippe, 2001.
"Dynamic Processes of Social and Economic Interactions: On the Persistence of Inefficiencies,"
CEPR Discussion Papers
3012, C.E.P.R. Discussion Papers.
- Armando Gomes & Philippe Jehiel, 2005. "Dynamic Processes of Social and Economic Interactions: On the Persistence of Inefficiencies," Journal of Political Economy, University of Chicago Press, vol. 113(3), pages 626-667, June.
- Armo Gomes & Philippe Jehiel, 2001. "Dynamic Processes of Social and Economic Interactions: On the Persistence of Inefficiencies," Penn CARESS Working Papers 76ff153ae29996d16c454e473, Penn Economics Department.
- Westermark, Andreas, 2003. "Bargaining, binding contracts, and competitive wages," Games and Economic Behavior, Elsevier, vol. 43(2), pages 296-311, May.
- Lloyd S. Shapley & Martin Shubik, 1964.
"Ownership and the Production Function,"
Cowles Foundation Discussion Papers
167, Cowles Foundation for Research in Economics, Yale University.
- Ray, Debraj, 2007. "A Game-Theoretic Perspective on Coalition Formation," OUP Catalogue, Oxford University Press, number 9780199207954.
- Armando Gomes, 2005. "Multilateral Contracting with Externalities," Econometrica, Econometric Society, vol. 73(4), pages 1329-1350, 07.
When requesting a correction, please mention this item's handle: RePEc:hit:econdp:2007-10. 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: (Digital Resources Section, Hitotsubashi University Library)
If references are entirely missing, you can add them using this form.