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An experiment on the Nash program: A comparison of two strategic mechanisms implementing the Shapley value

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  • Chessa, Michela
  • Hanaki, Nobuyuki
  • Lardon, Aymeric
  • Yamada, Takashi

Abstract

We experimentally compare two well-known mechanisms inducing the Shapley value as an ex ante equilibrium outcome of a noncooperative bargaining procedure: the demand-based Winter's demand commitment bargaining mechanism and the offer-based Hart and Mas-Colell procedure. Our results suggest that the offer-based Hart and Mas-Colell mechanism better induces players to cooperate and to agree on an efficient outcome, whereas the demand-based Winter mechanism better implements allocations that reflect players' effective power, provided that the grand coalition is formed.

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  • Chessa, Michela & Hanaki, Nobuyuki & Lardon, Aymeric & Yamada, Takashi, 2023. "An experiment on the Nash program: A comparison of two strategic mechanisms implementing the Shapley value," Games and Economic Behavior, Elsevier, vol. 141(C), pages 88-104.
    • Handle: RePEc:eee:gamebe:v:141:y:2023:i:c:p:88-104
    DOI: 10.1016/j.geb.2023.05.010
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    More about this item

    Keywords

    Nash program; Bargaining procedures; Shapley value; Experiments;
    All these keywords.

    JEL classification:

    • C70 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - General
    • C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games
    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior

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