Noncooperative Bargaining in Apex Games and the Kernel

M.P. Montero

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Abstract

This paper studies non-cooperative bargaining with random proposers in apex games. Two di¤erent protocols are considered: the egalitarian propocol, which selects each player to be the proposer with the same probability, and the proportional protocol, which selects each player with a probability proportional to his number of votes. Expected equilibrium payo¤s coincide with the kernel for the grand coalition regardless of the protocol. Expected payo¤s conditional on a coalition may depend on the protocol: given a coalition of the apex player with a minor player, an egalitarian protocol yields a nearly equal split whereas a proportional protocol leads to a proportional split.
Original languageEnglish
Place of PublicationTilburg
PublisherMicroeconomics
Number of pages24
Volume1999-61
Publication statusPublished - 1999

Publication series

NameCentER Discussion Paper
Volume1999-61

Keywords

  • noncooperative bargaining
  • apex games
  • kernel
  • random proposers

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