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The Burning Coalition Bargaining Model

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  • Marco Rogna

    (Bochum University of Applied Sciences)

Abstract

The paper presents a coalitional bargaining model, the Burning Coalition Bargaining Model, having a peculiar type of partial breakdown. In fact, in this model, the rejection of a proposal causes the possibility of the proposed coalition to vanish, rather than triggering the end of all negotiations or the exclusion of some players from the game, as already proposed in the literature. Under this type of partial breakdown and adopting a standard rejecter-proposes protocol, 0-normalized, 3-players games are examined for extreme values of the breakdown probability. When such probability is equal to one, efficiency is more difficult to obtain than in models adopting discounting and the first mover advantage is strongly diminished. Furthermore, when an efficient outcome is attained, the final distribution of payoffs reflects the strength of players in the game, with strength being represented by belonging to more valuable coalitions. The same feature is retained when considering a probability of breakdown approaching zero.

Suggested Citation

  • Marco Rogna, 2022. "The Burning Coalition Bargaining Model," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 59(3), pages 735-768, October.
    • Handle: RePEc:spr:sochwe:v:59:y:2022:i:3:d:10.1007_s00355-022-01409-3
    DOI: 10.1007/s00355-022-01409-3
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    1. Roberto Serrano, 2021. "Sixty-seven years of the Nash program: time for retirement?," SERIEs: Journal of the Spanish Economic Association, Springer;Spanish Economic Association, vol. 12(1), pages 35-48, March.

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    More about this item

    JEL classification:

    • C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games
    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory

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