Projects per year
Abstract
We present a noncooperative game model of coalitional bargaining, closely based on that of Gul (1989) but solvable by backward induction. In this game, Gul's condition of “value additivity” does not suffice to ensure the existence of a subgame perfect Nash equilibrium that supports the Shapley value, but a related condition—“no positive value-externalities”—does. Multiple equilibria can arise only in the event of ties, and with a mild restriction on tie-break rules these equilibria all support the Shapley value.
| Original language | English |
|---|---|
| Pages (from-to) | 2265–2280 |
| Number of pages | 16 |
| Journal | Econometrica |
| Volume | 84 |
| Issue number | 6 |
| Early online date | 9 Nov 2016 |
| DOIs | |
| Publication status | Published - Nov 2016 |
Keywords
- Shapley value
- Nash program
- noncooperative coalitional bargaining
Profiles
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Ben Mcquillin
- School of Economics - Lecturer in Economics
- Centre for Behavioural and Experimental Social Science - Member
- Behavioural Economics - Member
- Economic Theory - Member
Person: Research Group Member, Research Centre Member, Academic, Teaching & Research
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Robert Sugden
- School of Economics - Professor of Economics
- Centre for Behavioural and Experimental Social Science - Member
- Centre for Competition Policy - Member
- Behavioural Economics - Member
- Economic Theory - Member
Person: Research Group Member, Research Centre Member, Academic, Teaching & Research
Projects
- 1 Finished
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Network for Intergrated Behavioural Science
Starmer, C., Turocy, T., Barr, A., Brown, G., Chater, N., Cubitt, R., Fatas, E., Gathergood, J., Gosling, S., Hargreaves-Heap, S., Lomes, G., MacKay, R., Poulsen, A., Read, D., Stewart, N., Sugden, R. & Zizzo, D.
Economic and Social Research Council
31/12/12 → 30/12/16
Project: Research