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Demand bargaining and proportional payoffs in majority games

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  • Montero, Maria
  • Vidal-Puga, Juan J.

Abstract

We study a majoritarian bargaining model in which players make payoff demands in decreasing order of voting weight. The unique subgame perfect equilibrium outcome is such that the minimal winning coalition of the players that move first forms with payoffs proportional to the voting weights. This result advances previous analysis in terms of one or more of the following: a) the simplicity of the extensive form (finite horizon with a predetermined order of moves); b) the range of the majority games covered; c) the equilibrium concept (subgame perfect equilibrium is sufficient for a unique prediction).

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  • Montero, Maria & Vidal-Puga, Juan J., 2011. "Demand bargaining and proportional payoffs in majority games," Games and Economic Behavior, Elsevier, vol. 71(2), pages 395-408, March.
    • Handle: RePEc:eee:gamebe:v:71:y:2011:i:2:p:395-408
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    Cited by:

    1. Breitmoser, Yves & Tan, Jonathan H.W., 2013. "Reference dependent altruism in demand bargaining," Journal of Economic Behavior & Organization, Elsevier, vol. 92(C), pages 127-140.
    2. M. Puy, 2013. "Stable coalition governments: the case of three political parties," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 40(1), pages 65-87, January.
    3. Flavio Pressacco & Giacomo Plazzotta & Laura Ziani, 2014. "Twin relationships in Parsimonious Games: some results," Working Papers hal-00950076, HAL.
    4. Gomes, Armando, 2022. "Coalitional bargaining games: A new concept of value and coalition formation," Games and Economic Behavior, Elsevier, vol. 132(C), pages 463-477.
    5. Maria Montero & Juan Vidal-Puga, 2012. "A Violation of Monotonicity in a Noncooperative Setting," Discussion Papers 2012-04, The Centre for Decision Research and Experimental Economics, School of Economics, University of Nottingham.
    6. Breitmoser, Yves, 2011. "Binomial menu auctions in government formation," MPRA Paper 28576, University Library of Munich, Germany.
    7. Joosung Lee, 2013. "Bargaining and Buyout," 2013 Papers ple701, Job Market Papers.
    8. Breitmoser, Yves & Tan, Jonathan H.W., 2011. "Ultimata bargaining: generosity without social motives," MPRA Paper 33613, University Library of Munich, Germany.

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