Noncooperative selection of the core

Noncooperative selection of the core

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Article ID: iaor20051500
Country: Germany
Volume: 31
Issue: 4
Start Page Number: 527
End Page Number: 540
Publication Date: Jan 2002
Journal: International Journal of Game Theory
Authors:
Abstract:

For bargaining environments given by transferable utility characteristic functions that are zero-normalized and admit a nonempty core, we find a class of random-proposer bargaining games, generalized from Okada, such that there is a one-to-one mapping from these games to the core, each game realizes the corresponding core allocation as its unique (ex ante) Stationary Subgame Perfect Equilibrium (SSPE) payoff profile, and every ex post SSPE payoff profile converges to the core allocation as the discount factors goes to one. The result has a natural interpretation in terms of bargaining power.

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