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A strategic justification of the constrained equal awards rule through a procedurally fair multilateral bargaining game

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  • Makoto Hagiwara

    (Osaka University of Economics)

  • Shunsuke Hanato

    (Department of Industrial Engineering and Economics, School of Engineering, Tokyo Institute of Technology)

Abstract

We propose a new game to strategically justify the constrained equal awards rule in claims problems. Our game is “procedurally fair” (claimants are treated equally) and “multilateral” (all claimants negotiate simultaneously). In addition, even if claimants cannot reach an agreement in any period, they can renegotiate in the next period. We show that, for each claims problem, the awards vector chosen by the constrained equal awards rule achieved at period 1 is the unique subgame perfect equilibrium outcome of the game.

Suggested Citation

  • Makoto Hagiwara & Shunsuke Hanato, 2021. "A strategic justification of the constrained equal awards rule through a procedurally fair multilateral bargaining game," Theory and Decision, Springer, vol. 90(2), pages 233-243, March.
    • Handle: RePEc:kap:theord:v:90:y:2021:i:2:d:10.1007_s11238-020-09782-0
    DOI: 10.1007/s11238-020-09782-0
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    References listed on IDEAS

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