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The Harsanyi paradox and the 'right to talk' in bargaining among coalitions

  • Juan Vidal-Puga

    (Universidade de Vigo)

We introduce a non-cooperative model of bargaining when players are divided into coalitions. The model is a modification of the mechanism in Vidal-Puga (Economic Theory, 2005) so that all the players have the same chances to make proposals. This means that players maintain their own 'right to talk' when joining a coalition. We apply this model to an intriguing example presented by Krasa, Tamimi and Yannelis (Journal of Mathematical Economics, 2003) and show that the Harsanyi paradox (forming a coalition may be disadvantageous) disappears.

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File URL: http://128.118.178.162/eps/game/papers/0501/0501005.pdf
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Paper provided by EconWPA in its series Game Theory and Information with number 0501005.

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Length: 16 pages
Date of creation: 31 Jan 2005
Date of revision:
Handle: RePEc:wpa:wuwpga:0501005
Note: Type of Document - pdf; pages: 16
Contact details of provider: Web page: http://128.118.178.162

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  1. Suchan Chae & Hervé Moulin, 2010. "Bargaining among groups: an axiomatic viewpoint," International Journal of Game Theory, Springer, vol. 39(1), pages 71-88, March.
  2. Eyal Winter, 1989. "The Consistency and Potential for Values of Games with Coalition Structure," Discussion Paper Serie A 242, University of Bonn, Germany.
  3. Gómez-Rúa, María & Vidal-Puga, Juan, 2008. "The axiomatic approach to three values in games with coalition structure," MPRA Paper 8904, University Library of Munich, Germany.
  4. Ariel Rubinstein, 2010. "Perfect Equilibrium in a Bargaining Model," Levine's Working Paper Archive 252, David K. Levine.
  5. Guillaume HAERINGER, 1999. "A New Weight Scheme for the Shapley Value," Working Papers of BETA 9910, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.
  6. Calvo, Emilio & Javier Lasaga, J. & Winter, Eyal, 1996. "The principle of balanced contributions and hierarchies of cooperation," Mathematical Social Sciences, Elsevier, vol. 31(3), pages 171-182, June.
  7. Roberto Serrano, 2004. "Fifty Years of the Nash Program, 1953-2003," Working Papers 2004-20, Brown University, Department of Economics.
  8. Chae, Suchan & Heidhues, Paul, 2004. "A group bargaining solution," Mathematical Social Sciences, Elsevier, vol. 48(1), pages 37-53, July.
  9. Sergiu Hart & Andreu Mas-Colell, 1994. "Bargaining and value," Economics Working Papers 114, Department of Economics and Business, Universitat Pompeu Fabra, revised Feb 1995.
  10. David Pérez-Castrillo & David Wettstein, . "Bidding For The Surplus: A Non-Cooperative Approach To The Shapley Value," UFAE and IAE Working Papers 461.00, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
  11. Kamijo, Yoshio, 2008. "Implementation of weighted values in hierarchical and horizontal cooperation structures," Mathematical Social Sciences, Elsevier, vol. 56(3), pages 336-349, November.
  12. Hart, Sergiu & Kurz, Mordecai, 1983. "Endogenous Formation of Coalitions," Econometrica, Econometric Society, vol. 51(4), pages 1047-64, July.
  13. Gómez-Rúa, María & Vidal-Puga, Juan, 2008. "Balanced per capita contributions and levels structure of cooperation," MPRA Paper 8208, University Library of Munich, Germany.
  14. Amer, Rafael & Carreras, Francese & Gimenez, Jose Miguel, 2002. "The modified Banzhaf value for games with coalition structure: an axiomatic characterization," Mathematical Social Sciences, Elsevier, vol. 43(1), pages 45-54, January.
  15. Juan Vidal-Puga, 2005. "A bargaining approach to the Owen value and the Nash solution with coalition structure," Economic Theory, Springer, vol. 25(3), pages 679-701, 04.
  16. Levy, Anat & Mclean, Richard P., 1989. "Weighted coalition structure values," Games and Economic Behavior, Elsevier, vol. 1(3), pages 234-249, September.
  17. Kalai, Ehud & Samet, Dov, 1985. "Monotonic Solutions to General Cooperative Games," Econometrica, Econometric Society, vol. 53(2), pages 307-27, March.
  18. Albizuri, M. Josune & Zarzuelo, Jose M., 2004. "On coalitional semivalues," Games and Economic Behavior, Elsevier, vol. 49(2), pages 221-243, November.
  19. Calvo, Emilio & Gutiérrez, Esther, 2010. "Solidarity in games with a coalition structure," Mathematical Social Sciences, Elsevier, vol. 60(3), pages 196-203, November.
  20. Nash, John, 1950. "The Bargaining Problem," Econometrica, Econometric Society, vol. 18(2), pages 155-162, April.
  21. Vidal-Puga, Juan & Bergantinos, Gustavo, 2003. "An implementation of the Owen value," Games and Economic Behavior, Elsevier, vol. 44(2), pages 412-427, August.
  22. Yoshio Kamijo, 2009. "A Two-Step Shapley Value For Cooperative Games With Coalition Structures," International Game Theory Review (IGTR), World Scientific Publishing Co. Pte. Ltd., vol. 11(02), pages 207-214.
  23. Krasa, Stefan & Temimi, Akram & Yannelis, Nicholas C., 2003. "Coalition structure values in differential information economies: is unity a strength?," Journal of Mathematical Economics, Elsevier, vol. 39(1-2), pages 51-62, February.
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