Perseverance, Information and Stochastically Stable Outcomes

Author Info

• Murali Agastya

(University College London, Gower Street, London WC1E 6BT)

Abstract

One bargainer from a finite population X, is matched at random with a bargainer from another finite population Y. They simultaneously precommit to "minimal" shares of a unit surplus. Populations differ in their degree of \underline{perseverance}, parameterized by $\lambda \in (0,1)$. If the players precommit to $x$ and $y$ such that $x+y\leq 1$, then player $i$ gets his demand $x_i$ as well as a fraction $\lambda_i$ of the unbargained surplus $(1-x-y)$. If $x+y>1$, they get nothing. When players play adaptively and sometimes make errors as in Young (1993b), in the long run, a single division of surplus is observed most often. This is close to the asymmetric Nash bargaining solution with the weights $(1-\lambda_x)$ and $(1-\lambda_y)$. The surprise here is that the population that seemingly does well in the one shot encounters loses in the long run.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://128.118.178.162/eps/game/papers/9503/9503002.pdf

File URL: http://128.118.178.162/eps/game/papers/9503/9503002.ps.gz

Bibliographic Info

Paper provided by EconWPA in its series Game Theory and Information with number 9503002.

as
in new window

 Length: Date of creation: 09 Mar 1995 Date of revision: Handle: RePEc:wpa:wuwpga:9503002 Contact details of provider: Web page: http://128.118.178.162

References

References listed on IDEAS
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.:

as in new window
1. Young, H Peyton, 1993. "The Evolution of Conventions," Econometrica, Econometric Society, vol. 61(1), pages 57-84, January.
2. Murali Agastya, 1995. "An Evolutionary Bargaining Model," Game Theory and Information 9503001, EconWPA.
3. Young H. P., 1993. "An Evolutionary Model of Bargaining," Journal of Economic Theory, Elsevier, vol. 59(1), pages 145-168, February.
Full references (including those not matched with items on IDEAS)

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Corrections

When requesting a correction, please mention this item's handle: RePEc:wpa:wuwpga:9503002. 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: (EconWPA)

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.