We argue that, in exchange economies, various versions of the bargaining set cannot be implemented in Nash equilibrium. We then propose an extensive form mechanism that exactly implements the Aumann–Davis–Maschler bargaining set in subgame perfect equilibrium. The mechanism corresponds closely to the description of the bargaining set and respects feasibility in and out of equilibrium. Journal o...

This paper presents a new extension of the Rubinstein-St̊ahl bargaining model to the case with n players, called sequential share bargaining. The bargaining protocol is natural and has as its main feature that the players’ shares in the cake are determined sequentially. The bargaining protocol requires unanimous agreement for proposals to be implemented. Unlike all existing bargaining protocols ...

Product Market Regulation and Endogenous Union Formation We contribute to the growing literature which aims to link product market regulation and competition to labor market outcomes, in an attempt to explain the divergent US and continental European labor market performance over the past two decades. The main contributions of this paper are threefold. First, we show that the choice of bargaini...

We contribute to the growing literature which aims to link product market regulation and competition to labor market outcomes, in an attempt to explain the divergent US and continental European labor market performance over the past two decades. The main contributions of this paper are threefold. First, we show that the choice of bargaining regime is crucial for the effect of product market com...

The objective of this research is to tackle bargaining problems with Evolutionary Algorithms (EA). EA have been proved effective for a wide variety of problems. In this paper, we apply EA to solve Rubinstein’s Basic Alternating-Offer Bargaining Problem whose game-theoretic solution is known. Experimental outcomes suggest that EA are able to generate convincing approximations of the theoretic so...

This paper identifies three possible outcomes of higher relative firm bargaining power in a unionized firm facing an upward sloping labor supply curve. The conventional regime with reduced wage and higher employment corresponds to firm bargaining power below a certain critical value. A supply constrained regime where increased firm bargaining power reduces both wages and employment occurs when ...

This article presents the main principles of bargaining theory, along with some examples to illustrate the potential applicability of this theory to a variety of real-life bargaining situations. The roles of various key factors on the outcome of bargaining will be discussed and explored in the context of various canonical models of bargaining. It will be shown that such models can be adapted, e...

This paper follows van Damme (1986) in presenting a Meta Bargaining approach that justifies the Nash bargaining solution. But in contrast to van Damme’s procedure our Meta Bargaining game is universal in the sense that all bargaining solutions are allowed as strategic choices in the Meta Bargaining game. Also our result holds true for any number n of players. ∗Financial support of the Volkswage...

A number of authors have enriched Nash’s original bargaining problem through the introduction of an additional point, which we call a salient point. When the salient point is restricted to lie in the bargaining set, it is interpreted as a reference point, the outcome, perhaps, of a bargain from an earlier period. When restricted to lie outside the bargaining set, it is interpreted as a claim on...

The platform—a business model that creates value by connecting groups of users—is increasingly popular in many industries. Extant papers largely assume that platforms dominate the pricing decision, whereas in practice, prices in business-to-business transactions are often determined by a bargaining process. We study how the relative bargaining power of business partners affects pricing and comp...