The Network Formation problem has received increasing attention in recent years. Previous works have addressed this problem considering only networks designed by sel sh users, which can be consistently suboptimal. This paper addresses the network formation issue using cooperative game theory, which permits to study ways to enforce and sustain cooperation among agents. Both the Nash bargaining s...

We propose a bargaining process supergame over the strategies to play in a non-cooperative game. The agreement reached by players at the end of the bargaining process is the strategy profile that they will play in the original non-cooperative game. We analyze the subgame perfect equilibria of this supergame, and its implications on the original game. We discuss existence, uniqueness, and effici...

Bargaining behavior occupies an important part in economics literature, or social sciences in general. Although there is an extensive simulation literature on social tradeoff in the Prisoner’s Dilemma and the one-shot bargaining game, little has been done for the repeated bargaining game. Part of reason for this neglect is that, despite having a continuum of Nash equilibria, under homogeneous s...

an equitable risk allocation between contracting parties plays a vital role in enhancing the performance of the project. this research presents a new quantitative risk allocation approach by integrating fuzzy logic and bargaining game theory. owing to the imprecise and uncertain nature of players’ payoffs at different risk allocation strategies, fuzzy logic is implemented to determine the value...

This paper investigates whether ’tough’ bargaining behavior, which gives rise to inefficiency, can be evolutionary stable. We show that in a two-stage Nash Demand Game tough behavior survives. Indeed, almost all the surplus may be wasted. These results differ drastically from those of Ellingsen’s model (Ellingsen (1997)), where bargaining is efficient. We also study the Ultimatum Game. Here evo...

This paper presents a computational model of negotiation based on Nebel’s syntax-based belief revision. The model guarantees a unique bargaining solution for each bargaining game without using lotteries. Its game-theoretic properties are discussed against the existence and uniqueness of Nash equilibrium and subgame perfect equilibrium. We also study essential computational properties in relatio...

We introduce two new variations on the Nash demand game. One, like all known Nash-like demand games so far, has the Nash solution outcome as its equilibrium outcome. In the other, the range of solutions depends on an exogenous breakdown probability; surprisingly, the Kalai-Smorodinsky outcome proves to be the most robust equilibrium outcome. While the KalaiSmorodinsky solution always finishes o...

An essential element of goal-directed decision-making in social contexts is that agents' actions may be mutually interdependent. However, the most well-developed approaches to such strategic interactions, based on the Nash equilibrium concept in game theory, are sometimes too broad and at other times 'overlook' good solutions to fundamental social dilemmas and coordination problems. The authors...

Nash’s (1950) theory and related theories of bargaining are frequently criticized for their lack of empirical content, since their predictions depend on the bargainers’ von :Jeumann-Morgenstern utility functions, which are not directly observable. The purpose of this letter is to suggest that an approach recently taken by Kurz (1977, 1978) in a somewhat different context may provide a remedy fo...

Conley and Wilkie (1993) introduced and axiomatized the Nash extension bargaining solution, defined on a domain of comprehensive but not necessarily convex problems. In this paper we present a non-cooperative game that implements the Nash extension solution in subgame perfect equilibria in the limit as the discount rate applied between rounds of play vanishes. Journal of Economic Literature Cla...