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How Best to Disagree in Order to Agree?

Author

Listed:
  • Emily Tanimura

    (CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique)

  • Sylvie Thoron

    (LIPHA - Laboratoire Interdisciplinaire d'Etude du Politique Hannah Arendt Paris-Est - UPEM - Université Paris-Est Marne-la-Vallée - UPEC UP12 - Université Paris-Est Créteil Val-de-Marne - Paris 12)

Abstract

We propose a new non-cooperative approach to implement a cooperative bargaining solution. This approach relies on a mechanism which specifies what happens when, at the end of the bargaining phase, players' propositions are still not compatible. The mechanism uses a random lottery and the history of proposals. At equilibrium, under the threat of this mechanism, provided that the use of it carries a small cost, players reach consensus after a finite number of proposals. No discounting is needed. The equilibrium strategies implement the full Raiffa bargaining process and players agree on a solution arbitrarily close to the Raiffa solution.

Suggested Citation

  • Emily Tanimura & Sylvie Thoron, 2016. "How Best to Disagree in Order to Agree?," Post-Print hal-01303626, HAL.
    • Handle: RePEc:hal:journl:hal-01303626
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    References listed on IDEAS

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    Cited by:

    1. William Thomson, 2022. "On the axiomatic theory of bargaining: a survey of recent results," Review of Economic Design, Springer;Society for Economic Design, vol. 26(4), pages 491-542, December.

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