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Equilibrium Selection In The Nash Demand Game. An Evolutionary Approach

Author

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  • Juana Santamaria-Garcia

    (Universidad de Alicante)

Abstract

Equilibrium selection in the Nash demand game is investigated in a learning context with persistent randomness. I adopt a matching framework similar to Kandori, Mailath and Rob (1993) and assume that individuals belong to populations of different sizes. Despite the myopic behavior of individuals, the selected division of the surplus that will be observed most of the time coincides with the Nash bargaining solution. Depending on the matching scenario, either the symmetric or the generalized Nash bargaining solution is selected. In the latter case, the power is larger for the short-side of the market.

Suggested Citation

  • Juana Santamaria-Garcia, 2004. "Equilibrium Selection In The Nash Demand Game. An Evolutionary Approach," Working Papers. Serie AD 2004-34, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
    • Handle: RePEc:ivi:wpasad:2004-34
    as

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    File URL: http://www.ivie.es/downloads/docs/wpasad/wpasad-2004-34.pdf
    File Function: Fisrt version / Primera version, 2004
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    References listed on IDEAS

    as
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    Cited by:

    1. David Malueg, 2010. "Mixed-strategy equilibria in the Nash Demand Game," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 44(2), pages 243-270, August.

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    More about this item

    Keywords

    bargaining; best response; convention; learning; stochastic stability.;
    All these keywords.

    JEL classification:

    • C63 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computational Techniques
    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness

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