Dominance solvability of dynamic bargaining games

Arbeitspapier

We formulate and study a general finite-horizon bargaining game with simultaneous moves and a disagreement outcome that need not be the worst possible result for the agents. Conditions are identified under which the game is dominance solvable in the sense that iterative deletion of weakly dominated strategies selects a unique outcome. Our analysis uses a backward induction procedure to pinpoint the latest moment at which a coalition can be found with both an incentive and the authority to force one of the available alternatives. Iterative dominance then implies that the alternative characterized in this way will be agreed upon at the outset - or, if a suitable coalition is never found, that no agreement will be reached.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Working Paper ; No. 644

Classification and Topics

• Classification: Wirtschaft ; Public Goods ; Altruism; Philanthropy; Intergenerational Transfers ; Existence and Stability Conditions of Equilibrium
• Subject: backward induction ; coalition ; core ; weak dominance ; Verhandlungstheorie ; Koalition ; Core ; Theorie

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Tyson, Christopher J.
• Event: Veröffentlichung
• (who): Queen Mary University of London, Department of Economics
• (where): London
• (when): 2009

Further information

• Handle: http://hdl.handle.net/10419/55208
• Last update: 10.03.2025, 11:42 AM CET