A Fictitious-Play Model of Bargaining To Implement the Nash Solution
We present a fictitious-play model of bargaining, where two bargainers play the Nash demand game repeatedly. The bargainers make a deliberate decision on their demands in the initial period and then follow a fictitious play process subsequently. If the bargainers are patient, the set of epsilon -equilibria of the initial-demand game is in a neighborhood of the division corresponding to the Nash bargaining solution. As the bargainers make a more accurate comparison of payoffs and become more patient accordingly, the set of epsilon-equilibria shrinks and the only equilibrium left is the division of the Nash bargaining solution.
|Date of creation:||Jan 2005|
|Date of revision:|
|Contact details of provider:|| Web page: http://www.fas.nus.edu.sg/ecs/index.html|
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.:
- Binmore, Ken & Samuelson, Larry & Young, Peyton, 2003. "Equilibrium selection in bargaining models," Games and Economic Behavior, Elsevier, vol. 45(2), pages 296-328, November.
- Roberto Serrano, 2004.
"Fifty Years of the Nash Program, 1953-2003,"
2004-20, Brown University, Department of Economics.
- Young H. P., 1993. "An Evolutionary Model of Bargaining," Journal of Economic Theory, Elsevier, vol. 59(1), pages 145-168, February.
- Rubinstein, Ariel, 1982.
"Perfect Equilibrium in a Bargaining Model,"
Econometric Society, vol. 50(1), pages 97-109, January.
- 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).
- Tore Ellingsen, 1997.
"The Evolution of Bargaining Behavior,"
The Quarterly Journal of Economics,
Oxford University Press, vol. 112(2), pages 581-602.
- Ellingsen, Tore, 1995. "The Evolution of Bargaining Behavior," SSE/EFI Working Paper Series in Economics and Finance 61, Stockholm School of Economics.
- Oechssler, Jörg & Riedel, Frank, 1998.
"Evolutionary dynamics on infinite strategy spaces,"
SFB 373 Discussion Papers
1998,68, Humboldt University of Berlin, Interdisciplinary Research Project 373: Quantification and Simulation of Economic Processes.
- Joerg Oechssler & Frank Riedel, 1998. "Evolutionary Dynamics on Infinite Strategy Spaces," Game Theory and Information 9805002, EconWPA, revised 12 May 1998.
- Oechssler, Joerg & Frank Riedel, 1999. "Evolutionary Dynamics on Infinite Strategy Spaces," Discussion Paper Serie A 606, University of Bonn, Germany.
- Ken Binmore & Larry Samuelson & Petyon Young, 2003. "Equilibrium Selection in Bargaining Models," Levine's Bibliography 506439000000000466, UCLA Department of Economics.
- Nash, John, 1950. "The Bargaining Problem," Econometrica, Econometric Society, vol. 18(2), pages 155-162, April.
- Nash, John, 1953. "Two-Person Cooperative Games," Econometrica, Econometric Society, vol. 21(1), pages 128-140, April.
- Martin J. Osborne & Ariel Rubinstein, 2005. "Bargaining and Markets," Levine's Bibliography 666156000000000515, UCLA Department of Economics.
When requesting a correction, please mention this item's handle: RePEc:nus:nusewp:wp0509. 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: ()
If references are entirely missing, you can add them using this form.