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Research output: Contribution to Journal/Magazine › Journal article › peer-review
Research output: Contribution to Journal/Magazine › Journal article › peer-review
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TY - JOUR
T1 - Mechanism robustness in multilateral bargaining
AU - Winter, E.
PY - 1996/3
Y1 - 1996/3
N2 - This paper discusses the relationship between coalitional stability and the robustness of bargaining outcomes to the bargaining procedure. We consider a class of bargaining procedures described by extensive form games, where payoff opportunities are given by a characteristic function (cooperative) game. The extensive form games differ on the probability distribution assigned to chance moves which determine the order in which players take actions. One way to define mechanism robustness is in terms of the property of 'no first mover advantage'. An equilibrium is mechanism robust if for each member the expected payoff before and after being called to propose is the same. Alternatively one can define mechanism robustness as a property of equilibrium outcomes. An outcome is said to be mechanism robust if it is supported by some equilibrium in all the extensive form games (mechanisms) within our class. We show that both definitions of mechanism robustness provide an interesting characterization of the core of the underlying cooperative game. © 1996 Kluwer Academic Publishers.
AB - This paper discusses the relationship between coalitional stability and the robustness of bargaining outcomes to the bargaining procedure. We consider a class of bargaining procedures described by extensive form games, where payoff opportunities are given by a characteristic function (cooperative) game. The extensive form games differ on the probability distribution assigned to chance moves which determine the order in which players take actions. One way to define mechanism robustness is in terms of the property of 'no first mover advantage'. An equilibrium is mechanism robust if for each member the expected payoff before and after being called to propose is the same. Alternatively one can define mechanism robustness as a property of equilibrium outcomes. An outcome is said to be mechanism robust if it is supported by some equilibrium in all the extensive form games (mechanisms) within our class. We show that both definitions of mechanism robustness provide an interesting characterization of the core of the underlying cooperative game. © 1996 Kluwer Academic Publishers.
KW - Bargaining
KW - Core
KW - Mechanism robustness
U2 - 10.1007/BF00133170
DO - 10.1007/BF00133170
M3 - Journal article
VL - 40
SP - 131
EP - 147
JO - Theory and Decision
JF - Theory and Decision
SN - 0040-5833
IS - 2
ER -