Dominance Solvability of Dynamic Bargaining Games
We formulate and study a general finite-horizon bargaining game with simultaneous moves and a disagreement outcome that need not be the worst possible result for the agents. Conditions are identified under which the game is dominance solvable in the sense that iterative deletion of weakly dominated strategies selects a unique outcome. Our analysis uses a backward induction procedure to pinpoint the latest moment at which a coalition can be found with both an incentive and the authority to force one of the available alternatives. Iterative dominance then implies that the alternative characterized in this way will be agreed upon at the outset - or, if a suitable coalition is never found, that no agreement will be reached.
|Date of creation:||Apr 2009|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: +44 (0) 20 7882 5096
Fax: +44 (0) 20 8983 3580
Web page: http://www.econ.qmul.ac.uk
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.:
- Cho, Seok-ju & Duggan, John, 2009.
"Bargaining foundations of the median voter theorem,"
Journal of Economic Theory,
Elsevier, vol. 144(2), pages 851-868, March.
- John Duggan & Seok-ju Cho, 2007. "Bargaining Foundations of the Median Voter Theorem," Wallis Working Papers WP49, University of Rochester - Wallis Institute of Political Economy.
- Ariel Rubinstein, 2010.
"Perfect Equilibrium in a Bargaining Model,"
Levine's Working Paper Archive
661465000000000387, David K. Levine.
- Sakovics Jozsef, 1993. "Delay in Bargaining Games with Complete Information," Journal of Economic Theory, Elsevier, vol. 59(1), pages 78-95, February.
- KOHLBERG, Elon & MERTENS, Jean-François, .
"On the strategic stability of equilibria,"
CORE Discussion Papers RP
-716, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Dekel, Eddie, 1990.
"Simultaneous offers and the inefficiency of bargaining: A two-period example,"
Journal of Economic Theory,
Elsevier, vol. 50(2), pages 300-308, April.
- Eddie Dekel., 1989. "Simultaneous Offers and the Inefficiency of Bargaining: A Two-Period Example," Economics Working Papers 89-112, University of California at Berkeley.
- Dekel, Eddie, 1989. "Simultaneous Offers and the Inefficiency of Bargaining: A Two-Period Example," Department of Economics, Working Paper Series qt2b0402g4, Department of Economics, Institute for Business and Economic Research, UC Berkeley.
- Muhamet Yildiz, 2003. "Bargaining without a Common Prior-An Immediate Agreement Theorem," Econometrica, Econometric Society, vol. 71(3), pages 793-811, 05.
- Sutton, John, 1986. "Non-cooperative Bargaining Theory: An Introduction," Review of Economic Studies, Wiley Blackwell, vol. 53(5), pages 709-24, October.
- Leslie McFarland-Marx & Jeroen M. Swinkels, 1993.
"Order Independence for Iterated Weak Dominance,"
1040, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
- Marx, Leslie M. & Swinkels, Jeroen M., 1997. "Order Independence for Iterated Weak Dominance," Games and Economic Behavior, Elsevier, vol. 18(2), pages 219-245, February.
- Marx, Leslie M. & Swinkels, Jeroen M., 2000. "Order Independence for Iterated Weak Dominance," Games and Economic Behavior, Elsevier, vol. 31(2), pages 324-329, May.
- Chatterjee, K. & Samuelson, L., 1989.
"Perfect Equilibria In Simultaneous- Offers Bargaining,"
12-87-3, Pennsylvania State - Department of Economics.
- Chatterjee, Kalyan & Samuelson, Larry, 1990. "Perfect Equilibria in Simultaneous-Offers Bargaining," International Journal of Game Theory, Springer, vol. 19(3), pages 237-67.
- Kennan, J. & Wilson, R., 1991.
"Bargaining with Private Information,"
90-01rev, University of Iowa, Department of Economics.
- Perry Motty & Reny Philip J., 1993. "A Non-cooperative Bargaining Model with Strategically Timed Offers," Journal of Economic Theory, Elsevier, vol. 59(1), pages 50-77, February.
- D. Abreu & F. Gul, 1998.
"Bargaining and Reputation,"
Princeton Economic Theory Papers
00s9, Economics Department, Princeton University.
- Chatterjee, Kalyan & Bhaskar Dutta & Debraj Ray & Kunal Sengupta, 1993. "A Noncooperative Theory of Coalitional Bargaining," Review of Economic Studies, Wiley Blackwell, vol. 60(2), pages 463-77, April.
- Moulin, Herve, 1979. "Dominance Solvable Voting Schemes," Econometrica, Econometric Society, vol. 47(6), pages 1137-51, November.
- Drew Fudenberg & Jean Tirole, 1991. "Game Theory," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262061414, June.
- Admati, Anat R & Perry, Motty, 1987. "Strategic Delay in Bargaining," Review of Economic Studies, Wiley Blackwell, vol. 54(3), pages 345-64, July.
- Lones Smith & Ennio Stacchetti, 2002. "Aspirational Bargaining," Game Theory and Information 0201003, EconWPA.
- Nash, John, 1953. "Two-Person Cooperative Games," Econometrica, Econometric Society, vol. 21(1), pages 128-140, April.
- Banks, Jeffrey S. & Duggan, John, 1999. "A Bargaining Model of Collective Choice," Working Papers 1053, California Institute of Technology, Division of the Humanities and Social Sciences.
- Roger B. Myerson, 1977.
"Incentive Compatability and the Bargaining Problem,"
284, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
- Myerson, Roger B, 1979. "Incentive Compatibility and the Bargaining Problem," Econometrica, Econometric Society, vol. 47(1), pages 61-73, January.
- Ausubel, Lawrence M. & Cramton, Peter & Deneckere, Raymond J., 2002.
"Bargaining with incomplete information,"
Handbook of Game Theory with Economic Applications,
in: R.J. Aumann & S. Hart (ed.), Handbook of Game Theory with Economic Applications, edition 1, volume 3, chapter 50, pages 1897-1945
- Gretlein, Rodney, J, 1982. "Dominance Solvable Voting Schemes: A Comment," Econometrica, Econometric Society, vol. 50(2), pages 527-28, March.
- Krishna, Vijay & Serrano, Roberto, 1996. "Multilateral Bargaining," Review of Economic Studies, Wiley Blackwell, vol. 63(1), pages 61-80, January.
When requesting a correction, please mention this item's handle: RePEc:qmw:qmwecw:wp644. 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: (Nick Vriend)
If references are entirely missing, you can add them using this form.