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Iterative Dominance and Sequential Bargaining

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  • Christopher J. Tyson

    () (Nuffield College, Oxford University, UK)

Abstract

A new game theoretic analysis of finite horizon, complete information bargaining is advanced. The extensive form reflects an attempt to model unstructured negotiations, in which the negotiants can gain no artificial advantage from the details of the bargaining protocol. Conditions are identified under which the game is dominance solvable in the sense that iterative deletion of weakly dominated strategies selects a unique outcome. These conditions serve to preclude embedded static bargaining problems of the sort that have historically been deemed indeterminate, thereby ensuring that the dynamic problems analyzed will be resolvable without imposing any particular static theory.

Suggested Citation

  • Christopher J. Tyson, 2004. "Iterative Dominance and Sequential Bargaining," Economics Papers 2004-W23, Economics Group, Nuffield College, University of Oxford.
  • Handle: RePEc:nuf:econwp:0423
    as

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    File URL: http://www.nuff.ox.ac.uk/economics/papers/2004/w23/270804.pdf
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    coalition; core; iterative dominance; temporal monopoly;

    JEL classification:

    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
    • D71 - Microeconomics - - Analysis of Collective Decision-Making - - - Social Choice; Clubs; Committees; Associations
    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions

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