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An Experiment on the Nash Program: Comparing two Mechanisms Implementing the Shapley Value

Author

Listed:
  • Michela Chessa

    (Université Côte d'Azur, France
    GREDEG CNRS)

  • Nobuyuki Hanaki

    (Osaka University,)

  • Aymeric Lardon

    (GATE Lyon Saint-Etienne,)

  • Takashi Yamada

    (Yamaguchi University, Japan)

Abstract

We experimentally compare two well-known mechanisms inducing the Shapley value as an ex ante equilibrium outcome of a noncooperative bargaining procedure: the demand-based Winter's demand commitment bargaining mechanism and the offer-based Hart and Mas-Colell bidding procedure. Our results suggest that, on the one hand, the offer-based Hart and Mas-Colell mechanism better induces players to cooperate and to agree on an efficient outcome; on the other hand, the demand-based Winter mechanism better implements allocations that reflect players' effective bargaining power.

Suggested Citation

  • Michela Chessa & Nobuyuki Hanaki & Aymeric Lardon & Takashi Yamada, 2021. "An Experiment on the Nash Program: Comparing two Mechanisms Implementing the Shapley Value," GREDEG Working Papers 2021-07, Groupe de REcherche en Droit, Economie, Gestion (GREDEG CNRS), Université Côte d'Azur, France.
    • Handle: RePEc:gre:wpaper:2021-07
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    References listed on IDEAS

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    Cited by:

    1. Michela Chessa & Nobuyuki Hanaki & Aymeric Lardon & Takashi Yamada, 2021. "An experiment on the Winter demand commitment bargaining mechanism," ISER Discussion Paper 1152, Institute of Social and Economic Research, Osaka University.

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    More about this item

    Keywords

    Nash Program; Bargaining procedures; Shapley value; Experiments;
    All these keywords.

    JEL classification:

    • C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games
    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • C90 - Mathematical and Quantitative Methods - - Design of Experiments - - - General
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design

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