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Non-cooperative support for the asymmetric nash bargaining solution

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  • Britz, V.

    (Microeconomics & Public Economics)

  • Herings, P.J.J.

    (Microeconomics & Public Economics)

  • Predtetchinski, A.

    (Microeconomics & Public Economics)

Abstract

We study a model of non-cooperative multilateral unanimity bargaining on a full-dimensional payoff set. The probability distribution with which the proposing player is selected in each bargaining round follows an irreducible Markov process. If a proposal is rejected, negotiations break down with an exogenous probability and the next round starts with the complementary probability. As the risk of exogenous breakdown vanishes, stationary subgame perfect equilibrium payoffs converge to the weighted Nash bargaining solution with the stationary distribution of the Markov process as the weight vector.
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Suggested Citation

  • Britz, V. & Herings, P.J.J. & Predtetchinski, A., 2008. "Non-cooperative support for the asymmetric nash bargaining solution," Research Memorandum 018, Maastricht University, Maastricht Research School of Economics of Technology and Organization (METEOR).
    • Handle: RePEc:unm:umamet:2008018
    DOI: 10.26481/umamet.2008018
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    References listed on IDEAS

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