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A minimal sufficient set of procedures in a bargaining model

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  • Mao, Liang
  • Zhang, Tianyu

Abstract

For a two-player bargaining model, Mao (2016) extends the alternating offers procedure of Rubinstein (1982) to more general procedures and explores which payoff outcomes are feasible, in the sense that they can be supported by some procedures as subgame perfect equilibria. In this paper, we define a special class of procedures called normalized procedures. We show that while the set of normalized procedures can yield all feasible partitions, none of its proper subsets can do so.

Suggested Citation

  • Mao, Liang & Zhang, Tianyu, 2017. "A minimal sufficient set of procedures in a bargaining model," Economics Letters, Elsevier, vol. 152(C), pages 79-82.
    • Handle: RePEc:eee:ecolet:v:152:y:2017:i:c:p:79-82
    DOI: 10.1016/j.econlet.2017.01.006
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    References listed on IDEAS

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    1. Rubinstein, Ariel, 1982. "Perfect Equilibrium in a Bargaining Model," Econometrica, Econometric Society, vol. 50(1), pages 97-109, January.
    2. Ray, Debraj, 2007. "A Game-Theoretic Perspective on Coalition Formation," OUP Catalogue, Oxford University Press, number 9780199207954.
    3. Ken Binmore & Ariel Rubinstein & Asher Wolinsky, 1986. "The Nash Bargaining Solution in Economic Modelling," RAND Journal of Economics, The RAND Corporation, vol. 17(2), pages 176-188, Summer.
    4. Kalyan Chatterjee & Bhaskar Dutia & Debraj Ray & Kunal Sengupta, 2013. "A Noncooperative Theory of Coalitional Bargaining," World Scientific Book Chapters, in: Bargaining in the Shadow of the Market Selected Papers on Bilateral and Multilateral Bargaining, chapter 5, pages 97-111, World Scientific Publishing Co. Pte. Ltd..
    5. In, Younghwan & Serrano, Roberto, 2004. "Agenda restrictions in multi-issue bargaining," Journal of Economic Behavior & Organization, Elsevier, vol. 53(3), pages 385-399, March.
    6. Joel Watson, 1998. "Alternating-Offer Bargaining with Two-Sided Incomplete Information," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 65(3), pages 573-594.
    7. Danila Serra, 2008. "Bargaining for bribes under uncertainty," CSAE Working Paper Series 2008-22, Centre for the Study of African Economies, University of Oxford.
    8. Danila Serra, 2008. "Bargaining for bribes under uncertainty," Economics Series Working Papers CSAE WPS/2008-22, University of Oxford, Department of Economics.
    9. Muthoo, Abhinay, 1990. "Bargaining without commitment," Games and Economic Behavior, Elsevier, vol. 2(3), pages 291-297, September.
    10. Shaked, Avner & Sutton, John, 1984. "Involuntary Unemployment as a Perfect Equilibrium in a Bargaining Model," Econometrica, Econometric Society, vol. 52(6), pages 1351-1364, November.
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    Cited by:

    1. Shunsuke Hanato, 2020. "Equilibrium payoffs and proposal ratios in bargaining models," International Journal of Game Theory, Springer;Game Theory Society, vol. 49(2), pages 463-494, June.

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    More about this item

    Keywords

    Strategic bargaining; Subgame perfect equilibrium; Normalized procedures; Minimal sufficient set;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory

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