IDEAS home Printed from https://ideas.repec.org/a/wsi/igtrxx/v05y2003i01ns0219198903000891.html
   My bibliography  Save this article

On The Evolutionary Stability Of "Tough" Bargaining Behavior

Author

Listed:
  • ANDERS POULSEN

    (Department of Economics, The Aarhus School of Business, Silkeborgvej 2, DK-8000 Aarhus C, Denmark)

Abstract

This paper investigates whether "tough" bargaining behavior, which gives rise to inefficiency, can be evolutionarily stable. We show that in a two-stage Nash Demand Game such behavior survives. Indeed, almost all the surplus may be wasted. We also study the Ultimatum Game. Here evolutionary selection wipes out all tough behavior, as long as the Proposer does not directly observe the Responder's commitment to rejecting low offers.

Suggested Citation

  • Anders Poulsen, 2003. "On The Evolutionary Stability Of "Tough" Bargaining Behavior," International Game Theory Review (IGTR), World Scientific Publishing Co. Pte. Ltd., vol. 5(01), pages 63-71.
    • Handle: RePEc:wsi:igtrxx:v:05:y:2003:i:01:n:s0219198903000891
    DOI: 10.1142/S0219198903000891
    as

    Download full text from publisher

    File URL: http://www.worldscientific.com/doi/abs/10.1142/S0219198903000891
    Download Restriction: Access to full text is restricted to subscribers
    File URL: https://libkey.io/10.1142/S0219198903000891?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Muthoo,Abhinay, 1999. "Bargaining Theory with Applications," Cambridge Books, Cambridge University Press, number 9780521576475, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Miettinen, Topi & Vanberg, Christoph, 2020. "Commitment and Conflict in Multilateral Bargaining," Working Papers 0679, University of Heidelberg, Department of Economics.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Simon Hug & Tobias Schulz, 2007. "Referendums in the EU’s constitution building process," The Review of International Organizations, Springer, vol. 2(2), pages 177-218, June.
    2. Hindriks, Jean & Keen, Michael & Muthoo, Abhinay, 1999. "Corruption, extortion and evasion," Journal of Public Economics, Elsevier, vol. 74(3), pages 395-430, December.
    3. Kempf, Hubert & Rossignol, Stéphane, 2013. "National politics and international agreements," Journal of Public Economics, Elsevier, vol. 100(C), pages 93-105.
    4. Agnieszka Rusinowska & Ahmet Ozkardas, 2015. "On equilibrium payoffs in wage bargaining with discount rates varying in time," Economic Theory Bulletin, Springer;Society for the Advancement of Economic Theory (SAET), vol. 3(2), pages 181-199, October.
    5. Qian, Dong & Guo, Ju’e, 2014. "Research on the energy-saving and revenue sharing strategy of ESCOs under the uncertainty of the value of Energy Performance Contracting Projects," Energy Policy, Elsevier, vol. 73(C), pages 710-721.
    6. Jean-Philippe Gervais & Stephen Devadoss, 2006. "Estimating bargaining strengths of Canadian chicken producers and processors using a bilateral monopoly framework," Agribusiness, John Wiley & Sons, Ltd., vol. 22(2), pages 159-173.
    7. Koskela, Erkki & Stenbacka, Rune, 2001. "Equilibrium unemployment with credit and labour market imperfections," Bank of Finland Research Discussion Papers 5/2001, Bank of Finland.
    8. Ritter Moritz, 2010. "The Optimum Quantity of Money Revisited: Distortionary Taxation in a Search Model of Money," The B.E. Journal of Macroeconomics, De Gruyter, vol. 10(1), pages 1-26, June.
    9. Johannes Münster & Markus Reisinger, 2021. "Sequencing Bilateral Negotiations with Externalities," ECONtribute Discussion Papers Series 096, University of Bonn and University of Cologne, Germany.
    10. Joalland, Olivier & Pereau, Jean-Christophe & Rambonilaza, Tina, 2019. "Bargaining local compensation payments for the installation of new power transmission lines," Energy Economics, Elsevier, vol. 80(C), pages 75-85.
    11. Klaus Kultti & Eeva Mauring & Juuso Vanhala & Timo Vesala, 2015. "Adverse Selection In Dynamic Matching Markets," Bulletin of Economic Research, Wiley Blackwell, vol. 67(2), pages 115-133, April.
    12. Gerald Schneider & Daniel Finke & Stefanie Bailer, 2010. "Bargaining Power in the European Union: An Evaluation of Competing Game‐Theoretic Models," Political Studies, Political Studies Association, vol. 58(1), pages 85-103, February.
    13. Montero, M.P., 2002. "Two-Stage Bargaining with Reversible Coalitions : The Case of Apex Games," Other publications TiSEM 7dba0283-bc13-4f2c-8f5e-5, Tilburg University, School of Economics and Management.
    14. Ansink, Erik & Weikard, Hans-Peter, 2009. "Contested water rights," European Journal of Political Economy, Elsevier, vol. 25(2), pages 247-260, June.
    15. Nicolai J. Foss, 2002. "The Strategy and Transaction Cost Nexus Past Debates, Central Questions, and Future Research Possibilities," DRUID Working Papers 02-04, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
    16. Eso, Peter & Wallace, Chris, 2016. "Persuasion and Pricing : Dynamic Trading with Hard Evidence," CRETA Online Discussion Paper Series 24, Centre for Research in Economic Theory and its Applications CRETA.
    17. Innocent Bakam & Robin Matthews, 2009. "Emission trading in agriculture: a study of design options using an agent-based approach," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 14(8), pages 755-776, December.
    18. Hyytinen, Ari & Takalo, Tuomas, 2008. "Investor protection and business creation," International Review of Law and Economics, Elsevier, vol. 28(2), pages 113-122, June.
    19. Matteo Maria GALIZZI, 2006. "Gas thin markets:insights from bargaining and networks models," Departmental Working Papers 2006-12, Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano.
    20. Bjørn Olav Johansen & Tore Nilssen, 2016. "The Economics of Retailing Formats: Competition Versus Bargaining," Journal of Industrial Economics, Wiley Blackwell, vol. 64(1), pages 109-134, March.

    More about this item

    Keywords

    Bargaining; commitment; efficiency; evolutionary stability; JEL Classification C72; JEL Classification C78;
    All these keywords.

    JEL classification:

    • B4 - Schools of Economic Thought and Methodology - - Economic Methodology
    • C0 - Mathematical and Quantitative Methods - - General
    • C6 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling
    • C7 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory
    • D5 - Microeconomics - - General Equilibrium and Disequilibrium
    • D7 - Microeconomics - - Analysis of Collective Decision-Making
    • M2 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wsi:igtrxx:v:05:y:2003:i:01:n:s0219198903000891. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Tai Tone Lim (email available below). General contact details of provider: http://www.worldscinet.com/igtr/igtr.shtml .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.