The Condercet Paradox Revisited
We analyze the simplest Condorcet cycle with three players and three alternatives within a strategic bargaining model with recognition probabilities and costless delay. Mixed consistent subgame perfect equilibria exist whenever the geometric mean of the agents'' risk coefficients, ratios of utility differences between alternatives, is at most one. Equilibria are generically unique, Pareto efficient, and ensure agreement within finite expected time. Agents propose best or second-best alternatives. Agents accept best alternatives, may reject second-best alternatives with positive probability, and reject otherwise. For symmetric recognition probabilities and risk coefficients below one, agreement is immediate and each agent proposes his best alternative.
|Date of creation:||2010|
|Contact details of provider:|| Postal: P.O. Box 616, 6200 MD Maastricht|
Phone: +31 (0)43 38 83 830
Web page: https://www.maastrichtuniversity.nl/
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.:
- Rubinstein, Ariel, 1982. "Perfect Equilibrium in a Bargaining Model," Econometrica, Econometric Society, vol. 50(1), pages 97-109, January.
- Roth, Alvin E, 1985. "A Note on Risk Aversion in a Perfect Equilibrium Model of Bargaining," Econometrica, Econometric Society, vol. 53(1), pages 207-211, January.
- John C. Harsanyi & Reinhard Selten, 1988. "A General Theory of Equilibrium Selection in Games," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262582384.
- Herings P.J.J. & Houba H, 2015. "Costless delay in negotiations," Research Memorandum 002, Maastricht University, Graduate School of Business and Economics (GSBE).
- repec:cup:apsrev:v:83:y:1989:i:04:p:1181-1206_08 is not listed on IDEAS
- Kalyan Chatterjee & Bhaskar Dutia & Debraj Ray & Kunal Sengupta, 2013. "A Noncooperative Theory of Coalitional Bargaining," World Scientific Book Chapters,in: Bargaining in the Shadow of the Market Selected Papers on Bilateral and Multilateral Bargaining, chapter 5, pages 97-111 World Scientific Publishing Co. Pte. Ltd..
- Rubinstein, Ariel, 1979. "A Note about the "Nowhere Denseness" of Societies Having an Equilibrium under Majority Rule," Econometrica, Econometric Society, vol. 47(2), pages 511-514, March.
- Herings, P. Jean-Jacques & Peeters, Ronald J. A. P., 2004.
"Stationary equilibria in stochastic games: structure, selection, and computation,"
Journal of Economic Theory,
Elsevier, vol. 118(1), pages 32-60, September.
- Herings,P. Jean-Jacques & Peeters,Ronald J.A.P, 2000. "Stationary Equilibria in Stochastic Games: Structure, Selection, and Computation," Research Memorandum 004, Maastricht University, Maastricht Research School of Economics of Technology and Organization (METEOR).
- Safra, Zvi & Zhou, Lin & Zilcha, Itzhak, 1990. "Risk Aversion in the Nash Bargaining Problem with Risky Outcomes and Risky Disagreement Points," Econometrica, Econometric Society, vol. 58(4), pages 961-965, July.
- V. Bhaskar & George J. Mailathy & Stephen Morris, 2009. "A Foundation for Markov Equilibria in Infinite Horizon Perfect Information Games," Levine's Working Paper Archive 814577000000000178, David K. Levine.
- V. Bhaskar & George J. Mailath & Stephen Morris, 2012. "A Foundation for Markov Equilibria in Infinite Horizon Perfect Information Games," PIER Working Paper Archive 12-043, Penn Institute for Economic Research, Department of Economics, University of Pennsylvania.
- V. Bhaskar & George J. Mailath & Stephen Morris, 2009. "A Foundation for Markov Equilibria in Infinite Horizon Perfect Information Games," PIER Working Paper Archive 09-029, Penn Institute for Economic Research, Department of Economics, University of Pennsylvania.
- Norman Schofield, 1983. "Generic Instability of Majority Rule," Review of Economic Studies, Oxford University Press, vol. 50(4), pages 695-705.
- McKelvey, Richard D, 1979. "General Conditions for Global Intransitivities in Formal Voting Models," Econometrica, Econometric Society, vol. 47(5), pages 1085-1112, September.
- V. Bhaskar & George J. Mailath & Stephen Morris, 2013. "A Foundation for Markov Equilibria in Sequential Games with Finite Social Memory -super-," Review of Economic Studies, Oxford University Press, vol. 80(3), pages 925-948.
- Francis Bloch & Effrosyni Diamantoudi, 2011. "Noncooperative formation of coalitions in hedonic games," International Journal of Game Theory, Springer;Game Theory Society, vol. 40(2), pages 263-280, May.
- Christian Roessler & Sandro Shelegia & Bruno Strulovici, 2013. "The Roman Metro Problem: Dynamic Voting and the Limited Power of Commitment," Discussion Papers 1560, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
- Hans Haller & Roger Lagunoff, 2000. "Genericity and Markovian Behavior in Stochastic Games," Econometrica, Econometric Society, vol. 68(5), pages 1231-1248, September.
- Hans Haller & Roger Lagunoff, 1999. "Genericity and Markovian Behavior in Stochastic Games," Game Theory and Information 9901003, EconWPA, revised 03 Jun 1999.
- Harrington, Joseph E, Jr, 1990. "The Role of Risk Preferences in Bargaining When Acceptance of a Proposal Requires Less than Unanimous Approval," Journal of Risk and Uncertainty, Springer, vol. 3(2), pages 135-154, June.
- McKelvey, Richard D., 1976. "Intransitivities in multidimensional voting models and some implications for agenda control," Journal of Economic Theory, Elsevier, vol. 12(3), pages 472-482, June.
- Eraslan, Hulya, 2002. "Uniqueness of Stationary Equilibrium Payoffs in the Baron-Ferejohn Model," Journal of Economic Theory, Elsevier, vol. 103(1), pages 11-30, March.
- Maskin, Eric & Tirole, Jean, 2001. "Markov Perfect Equilibrium: I. Observable Actions," Journal of Economic Theory, Elsevier, vol. 100(2), pages 191-219, October.
- Eric Maskin & Jean Tirole, 1997. "Markov Perfect Equilibrium, I: Observable Actions," Harvard Institute of Economic Research Working Papers 1799, Harvard - Institute of Economic Research.
- B. Douglas Bernheim & Antonio Rangel & Luis Rayo, 2006. "The Power of the Last Word in Legislative Policy Making," Econometrica, Econometric Society, vol. 74(5), pages 1161-1190, September.
- repec:cup:apsrev:v:94:y:2000:i:01:p:73-88_22 is not listed on IDEAS
- Houba, Harold, 2008. "On continuous-time Markov processes in bargaining," Economics Letters, Elsevier, vol. 100(2), pages 280-283, August.
- Bloch, Francis, 1996. "Sequential Formation of Coalitions in Games with Externalities and Fixed Payoff Division," Games and Economic Behavior, Elsevier, vol. 14(1), pages 90-123, May. Full references (including those not matched with items on IDEAS)
When requesting a correction, please mention this item's handle: RePEc:unm:umamet:2010009. 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: (Leonne Portz)
If references are entirely missing, you can add them using this form.