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Equity dynamics in bargaining without information exchange

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  • Heinrich Nax

Abstract

In this paper, completely uncoupled dynamics for n-player bargaining are proposed that mirror key behavioral elements of early bargaining and aspiration adjustment models (Zeuthen, 1930 ; Sauermann and Selten, 118:577–597 1962 ). Individual adjustment dynamics are based on directional learning adjustments, solely driven by histories of own realized payoffs. Bargaining this way, all possible splits have positive probability in the stationary distribution of the process, but players will split the pie almost equally most of the time. The expected waiting time for almost equal splits to be played is quadratic. Copyright Springer-Verlag Berlin Heidelberg 2015

Suggested Citation

  • Heinrich Nax, 2015. "Equity dynamics in bargaining without information exchange," Journal of Evolutionary Economics, Springer, vol. 25(5), pages 1011-1026, November.
    • Handle: RePEc:spr:joevec:v:25:y:2015:i:5:p:1011-1026
    DOI: 10.1007/s00191-015-0405-9
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    References listed on IDEAS

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    3. Colasante, Annarita, 2017. "Selection of the distributional rule as an alternative tool to foster cooperation in a Public Good Game," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 468(C), pages 482-492.

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    More about this item

    Keywords

    Bargaining; Cooperative game theory; Equity; Evolutionary game theory; (Completely uncoupled) learning; C71; C73; C78; D83;
    All these keywords.

    JEL classification:

    • C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative 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
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness

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