The bargaining approach can be usefully applied to address some classical questions in cooperative game theory. One of these concerns the formation of coalitions and the writing of binding agreements among groups of players. Many years ago, Ronald Coase argued that such negotiations would invariably end in an efficient outcome, and that bargaining power — whatever that is — would be reflected i...

The semireactive bargaining set, a solution for cooperative games, is introduced. This solution is in general a subsolution of the bargaining set and a supersolution of the reactive bargaining set. However, on various classes of transferable utility games the semireactive and the reactive bargaining set coincide. The semireactive prebargaining set on TU games can be axiomatized by one-person ra...

The communication of participants to identify an acceptable bargaining outcome in the Nash bargaining game is all about fairness norms. Participants introduce fairness norms which yield a better outcome for themselves in order to convince the other participant of their bargaining proposal. Typically, these fairness norms are in line with theoretical predictions, which support a wide variety of ...

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...

Two deviations of alternating-offer bargaining behavior from economic theory are observed together, yet have been studied separately. Players who could secure themselves a large surplus share if bargainers were purely self-interested incompletely exploit their advantage. Delay in agreement occurs even if all experimentally controlled information is common knowledge. This paper rationalizes both...

We revisit the well-known result that asserts that an increase in the degree of one’s risk aversion improves the position of one’s opponents. To this end, we apply Yaari’s dual theory of choice under risk both to Nash’s bargaining problem and to Rubinstein’s game of alternating offers. Under this theory, unlike under expected utility, risk aversion influences the bargaining outcome only when th...

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 report an experiment designed to test the influence of noisy commitments on efficiency in a simple bargaining game. We investigate two different levels of commitment reliability in a variant of the peasant-dictator game. Theoretical analysis suggests that the reliability of commitments in this game does not affect efficiency. We find that accurate commitments promote efficiency, as expected ...

The Network Design problem has received increasing attention in recent years. Previous works have addressed this problem considering almost exclusively networks designed by selfish users, which can be consistently suboptimal. This paper addresses the network design issue using cooperative game theory, which permits to study ways to enforce and sustain cooperation among users. Both the Nash barg...

The problem of mapping tasks onto a computational grid with the aim to minimize the power consumption and the makespan subject to the constraints of deadlines and architectural requirements is considered in this paper. To solve this problem, we propose a solution from cooperative game theory based on the concept of Nash Bargaining Solution. The proposed game theoretical technique is compared ag...