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A conflict-free arbitration scheme in a large population

Author

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  • Hannu Vartiainen

    (Department of Economics, Turku School of Economics)

Abstract

This paper studies allocations that can be implemented by an arbitrator subject to the constraint that the agents' outside option is to start bargaining by themselves. As the population becomes large, the set of implementable allocations shrinks to a singleton point - the conflict-free allocation. Finally, the conflict-free allocation can be implemented via a simple "lobbying" game where parties composed of agents with similar preferences bid for the right to be the first proposer in a bargaining game among the parties, i.e. in the "political game".

Suggested Citation

  • Hannu Vartiainen, 2008. "A conflict-free arbitration scheme in a large population," Discussion Papers 34, Aboa Centre for Economics.
    • Handle: RePEc:tkk:dpaper:dp34
    as

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    File URL: http://www.ace-economics.fi/kuvat/dp34.pdf
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    References listed on IDEAS

    as
    1. Ken Binmore & Ariel Rubinstein & Asher Wolinsky, 1986. "The Nash Bargaining Solution in Economic Modelling," RAND Journal of Economics, The RAND Corporation, vol. 17(2), pages 176-188, Summer.
    2. Fishburn, Peter C & Rubinstein, Ariel, 1982. "Time Preference," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 23(3), pages 677-694, October.
    3. Kultti, Klaus & Vartiainen, Hannu, 2008. "Bargaining with many players: A limit result," Economics Letters, Elsevier, vol. 101(3), pages 249-252, December.
    4. Kultti Klaus & Vartiainen Hannu, 2007. "Von Neumann-Morgenstern Stable Set Bridges Time-Preferences to the Nash Solution," The B.E. Journal of Theoretical Economics, De Gruyter, vol. 7(1), pages 1-26, November.
    5. Vijay Krishna & Roberto Serrano, 1996. "Multilateral Bargaining," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 63(1), pages 61-80.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    non-cooperative bargaining; arbitration; implementation;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory

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