Remarks on Bargaining and Cooperation in Strategic Form Games
Although possessing many beautiful features, the Hart and Mas-Colell bargaining model is not flawless: the concept of threat in this model may behave quite counter-intuitive, and its SP equilibrium expected payoff vector may not be the same as the min-max solution payoff vector in zero-sum games. If we postpone realizations of all threats to the end of the game, the two problems can be solved simultaneously. This is exactly the 2(a) model suggested by Hart and Mas-Colell in the last section of their paper. I show that the new model, unfortunately, can only guarantee the existence of an SP equilibrium in the two player case. For the original model, I reduce the computation of an SP equilibrium to a system of linear inequalities. Quantitative efficiency and symmetric SP equilibria are also discussed.
|Date of creation:||Jan 2011|
|Contact details of provider:|| Postal: Feldman Building - Givat Ram - 91904 Jerusalem|
Web page: http://www.ratio.huji.ac.il/
More information through EDIRC
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.:
- Nash, John, 1953. "Two-Person Cooperative Games," Econometrica, Econometric Society, vol. 21(1), pages 128-140, April.
- Sergiu Hart, 2004.
122247000000000471, UCLA Department of Economics.
- Sergiu Hart, 2005. "Adaptive Heuristics," Econometrica, Econometric Society, vol. 73(5), pages 1401-1430, 09.
- Sergiu Hart, 2013. "Adaptive Heuristics," World Scientific Book Chapters, in: Simple Adaptive Strategies From Regret-Matching to Uncoupled Dynamics, chapter 11, pages 253-287 World Scientific Publishing Co. Pte. Ltd..
- Sergiu Hart, 2004.
"A comparison of non-transferable utility values,"
Theory and Decision,
Springer, vol. 56(2_2), pages 35-46, 02.
- Sergiu Hart & Andreu Mas-Colell, 2010. "Bargaining and Cooperation in Strategic Form Games," Journal of the European Economic Association, MIT Press, vol. 8(1), pages 7-33, 03.
- DHILLON, Amrita & MERTENS, Jean-François, 1992.
"Perfect correlated equilibria,"
CORE Discussion Papers
1992039, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Sergiu Hart & Andreu Mas-Colell, 1994.
"Bargaining and value,"
Economics Working Papers
114, Department of Economics and Business, Universitat Pompeu Fabra, revised Feb 1995.
When requesting a correction, please mention this item's handle: RePEc:huj:dispap:dp565. 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: (Tomer Siedner)
If references are entirely missing, you can add them using this form.