A Violation of Monotonicity in a Noncooperative Setting
A power measure is monotone if a player with a larger weight is assigned at least as much power as a player with a smaller weight in the same weighted majority game. Failure of a power index to satisfy monotonicity is often considered a pathological feature. In this paper, we show that monotonicity may fail in the unique subgame perfect equilibrium of a noncooperative bargaining game. A player with a smaller weight may have a higher expected payoff than a player with a larger weight. This is possible even though coalition formation and payoff division are endogenous, all players are rational and there is no asymmetry between the players other than in the weights.
|Date of creation:||Apr 2012|
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- Montero, Maria & Vidal-Puga, Juan J., 2011. "Demand bargaining and proportional payoffs in majority games," Games and Economic Behavior, Elsevier, vol. 71(2), pages 395-408, March.
- Manfred Holler & Stefan Napel, 2004.
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Theory and Decision,
Springer, vol. 56(1), pages 93-111, April.
- Maria Montero & Juan Vidal-Puga, 2005. "Demand commitment in legislative bargaining," Game Theory and Information 0511005, EconWPA.
- Federico Valenciano & Annick Laruelle, 2004.
"A Critical Reappraisal Of Some Voting Power Paradoxes,"
Working Papers. Serie AD
2004-04, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
- Annick Laruelle & Federico Valenciano, 2005. "A critical reappraisal of some voting power paradoxes," Public Choice, Springer, vol. 125(1), pages 17-41, July.
- Juan Vidal-Puga, 2003.
"Bargaining with commitments,"
Game Theory and Information
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