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Bargaining delay under partial breakdowns and externalities

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  • Kawamori, Tomohiko
  • Miyakawa, Toshiji

Abstract

We consider a noncooperative coalitional bargaining game where partial breakdowns, such as the rejecter of a proposal exiting from the game, take place with a positive probability, and externalities accompany the formation of coalitions. We present an example in which there exists a stationary subgame perfect equilibrium (SSPE) such that a bargaining delay occurs. We also show that under no partial breakdowns or no externalities, delay does not occur in any SSPE.

Suggested Citation

  • Kawamori, Tomohiko & Miyakawa, Toshiji, 2019. "Bargaining delay under partial breakdowns and externalities," Economics Letters, Elsevier, vol. 183(C), pages 1-1.
    • Handle: RePEc:eee:ecolet:v:183:y:2019:i:c:16
    DOI: 10.1016/j.econlet.2019.108541
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    References listed on IDEAS

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    12. Klaus Kultti & Hannu Vartiainen, 2010. "Multilateral non-cooperative bargaining in a general utility space," International Journal of Game Theory, Springer;Game Theory Society, vol. 39(4), pages 677-689, October.
    13. Kawamori, Tomohiko & Miyakawa, Toshiji, 2016. "Nash bargaining solution under externalities," Mathematical Social Sciences, Elsevier, vol. 84(C), pages 1-7.
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    15. Britz, Volker & Herings, P. Jean-Jacques & Predtetchinski, Arkadi, 2015. "Delay, multiplicity, and non-existence of equilibrium in unanimity bargaining games," Journal of Mathematical Economics, Elsevier, vol. 61(C), pages 192-202.
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    Cited by:

    1. Maria Montero, 2023. "Coalition Formation in Games with Externalities," Dynamic Games and Applications, Springer, vol. 13(2), pages 525-548, June.

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    More about this item

    Keywords

    Coalitional bargaining; Rejecter-exit partial breakdown; Externality; Delay;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games
    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory

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