Noncooperative bargaining and the core of an n-person characteristic function game

Noncooperative bargaining and the core of an n-person characteristic function game

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Article ID: iaor19951077
Country: Poland
Volume: 21
Issue: 1
Start Page Number: 231
End Page Number: 250
Publication Date: Jan 1992
Journal: Control and Cybernetics
Authors:
Keywords: bargaining
Abstract:

The paper analysis whether the core of an n-person characteristic function game can be supported by players’ noncooperative behaviour in a suitably defined bargaining model. In the bargaining model proposed players negotiate over many (even up to infinite number of) periods, with negotiations within one period consisting of finitely many proposals/responses. It is shown that for a totally balanced game the set of all payoff distributions attained by the subgame perfect equilibrium points of the bargaining model with no discounting payoffs coincides with the core of the game provided the equilibrium points satisfy two conditions of low complexity of players’ bargaining behaviour, namely stationarity and payoff-orientation of responses.

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