We compare bargaining solutions in terms of the relevance of alternatives. We show that most well-known bargaining solutions do not use all the alternatives, but there are numerous bargaining solutions that do. We introduce a new class of bargaining solutions called ``average alternative solutions'', characterize them, and show that the Nash solution and the Kalai-Smorodinsky solution are limit...

We analyze a model of strategic network formation prior to a Manea (2011) bargaining game: ex-ante homogeneous players form costly undirected links anticipating expected equilibrium payoffs from the subsequent network bargaining. Assuming patient players, we provide a complete characterization of non-singularly pairwise (Nash) stable networks: specific disjoint unions of separated pairs, odd ci...

The evolution and persistence of biological cooperation have been an important puzzle in evolutionary theory. Here, we suggest a new approach based on bargaining theory to tackle the question. We present a mechanistic model for negotiation of benefits between a nitrogen-fixing nodule and a legume plant. To that end, we first derive growth rates for the nodule and plant from metabolic models of ...

We investigate the e®ect of introducing costs of complexity in the n -person unanimity bargaining game. As is well-known, in this game every individually rational allocation is sustainable as a Nash equilibrium (also as a subgame perfect equilibrium if players are su±ciently patient and if n > 2). Moreover, delays in agreement are also possible in such equilibria. By limiting ourselves to a pla...

This sequel paper analyzes other selected methodologies and applications from the theory of continuous-time (real) option games – the combination of real options and game theory. In the first paper (Dias & Teixeira, 2003), we analyzed preemption and collusion models of duopoly under uncertainty. In this second paper we focus on models of oligopoly under uncertainty, war of attrition under uncer...

The main goal of this work is to design a team of agents that can accomplish consensus over a common value for the agents’ output using cooperative game theory approach. A semi-decentralized optimal control strategy that was recently introduced by the authors is utilized that is based on minimization of individual cost using local information. Cooperative game theory is then used to ensure team...

Learning in many multi-agent settings is inherently repeated play. This calls into question the naive application of single play Nash equilibria in multi-agent learning and suggests, instead, the application of give-andtake principles of bargaining. We modify and analyze a satisficing algorithm based on (Karandikar et al., 1998) that is compatible with the bargaining perspective. This algorithm...

I prove that ‘Disagreement Point Convexity’ and ‘Midpoint Domination’ characterize the Nash bargaining solution on the class of twoplayer bargaining problems and on the class of smooth bargaining problems. I propose an example to show that these two axioms do not characterize the Nash bargaining solution on the class of bargaining problems with more than two players. I prove that the other solu...

The simplest bargaining situation is that of two persons who have to agree on the choice of an outcome from a given set offeasible outcomes; in case no agreement is reached, a specified disagreement outcome results. This two-personpure bargaining problem has been extensively analyzed, starting with Nash (1950). When there are more than two participants, the n-person straightforward generalizati...

Given two finite ordered sets A = {a1, . . . , am} and B = {b1, . . . , bn}, introduce the set of mn outcomes of the game O = {(a, b) | a ∈ A, b ∈ B} = {(ai, bj) | i ∈ I = {1, . . . ,m}, j ∈ J = {1, . . . , n}. Two players, Alice and Bob, have the sets of strategies X and Y that consist of all monotone non-decreasing mappings x : A → B and y : B → A, respectively. It is easily seen that each pa...