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Pure Bargaining Problems with a Coalition Structure

Author

Listed:
  • Francesc Carreras

    (Universitat Politècnica de Catalunya (UPC))

  • Guillermo Owen

    (Naval Postgraduate School)

Abstract

We consider here pure bargaining problems endowed with a coalition structure such that each union is given its own utility. In this context we use the Shapley rule in order to assess the main options available to the agents: individual behavior, cooperative behavior, isolated unions behavior, and bargaining unions behavior. The latter two respectively recall the treatment given by Aumann–Drèze and Owen to cooperative games with a coalition structure. A numerical example illustrates the procedure. We provide criteria to compare any pair of behaviors for each agent, introduce and axiomatically characterize a modified Shapley rule, and determine its natural domain, that is, the set of problems where the bargaining unions behavior is the best option for all agents.

Suggested Citation

  • Francesc Carreras & Guillermo Owen, 2016. "Pure Bargaining Problems with a Coalition Structure," Homo Oeconomicus: Journal of Behavioral and Institutional Economics, Springer, vol. 33(1), pages 93-120, August.
    • Handle: RePEc:spr:homoec:v:33:y:2016:i:1:d:10.1007_s41412-016-0007-2
    DOI: 10.1007/s41412-016-0007-2
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    References listed on IDEAS

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    1. René Brink & Yukihiko Funaki, 2009. "Axiomatizations of a Class of Equal Surplus Sharing Solutions for TU-Games," Theory and Decision, Springer, vol. 67(3), pages 303-340, September.
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    Cited by:

    1. Antonio Magaña & Francesc Carreras, 2018. "Coalition Formation and Stability," Group Decision and Negotiation, Springer, vol. 27(3), pages 467-502, June.

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    More about this item

    Keywords

    Pure bargaining problem; Coalition structure; Shapley rule;
    All these keywords.

    JEL classification:

    • C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games

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