We propose “Rip-off”, a new multi-player bargaining game based on the well-studied weighted voting game (WVG) model from cooperative game theory. Many different solution concepts, such as the Core and the Shapley value have been proposed to analyze models such as WVGs. However, there is little work on analyzing how humans actually play in such settings. We conducted several experiments where we...

This paper builds game model to analyze selection issues of IUR co-operation model through Nash bargaining theory. The result shows that, the stronger innovative capability, more economic benefits expected, less technical content of scientific research, companies more inclined to choose a higher degree of close model; otherwise, companies tend to choose more closely integrated degree lower mode.

Two bargaining parties play the Nash Demand Game to share a pie whose size is determined by one party's investment decision. Various investment levels are subgame-perfect. Adding the investment decision to Young's evolutionary bargaining model yields the following long-run outcome: efficient investment prevails and the investor's share of the pie approximates die maximum of (i) the smallest sha...

We investigate how informational frictions affect trading in decentralized markets in theory and in a laboratory setting. Subjects, matched pairwise at random, trade divisible commodities that have different private values for a divisible asset with a common value (interpreted as money). We compare a bargaining game with complete information with a bargaining game where agents can produce fraud...

Recently, [8] defined the class of Linear Nash Bargaining Games (LNB) and obtained combinatorial, polynomial time algorithms for several games in this class. [8] also defines two natural subclasses within LNB, UNB and SNB, which contain a number of natural Nash bargaining games. In this paper we define three basic game theoretic properties of Nash bargaining games: price of bargaining, fairness...

The aim of this paper is to determine how the place of a player in a network of communications ̊ affects her bargaining power with respect to the others. We adapt the Rubinstein-Stahl two-player noncooperative bargaining game of alternating offers to the case of n players connected through a graph. We show that this game has a unique stationary subgame perfect equilibrium outcome from which we d...

We consider a cellular system with multiple Femtocells operating in a Macrocell. They are sharing a set of communication channels. Each Femtocell has multiple users requiring certain minimum rate guarantees. Each channel has a peak power constraint to limit interference to the Macro Base Station (BS). We formulate the problem of channel allocation and power control at the Femtocells as a noncoo...

We propose an elementary theory of wars fought by fully rational contenders that features three of the main rationalist explanations for armed conflicts: uncertainty, commitment, and indivisibility. Two parties play a Markov game that combines stages of bargaining, where offers are made, with claim stages, where one side can commit to impose surrender on the other. Under uncertainty on the pers...

Building on Genicot and Ray (2006) we develop a model on non-cooperative bargaining that combines the two main approaches in the literature of contracting with externalities: the o¤er game (in which the principal makes simultaneous o¤ers to the agents) and the bidding game (in which the agents make simultaneous o¤ers to the principal). Allowing for agent coordination, we show that the outcome o...

In this paper, we propose a bid optimizer for sponsored keyword search auctions which leads to better retention of advertisers by yielding attractive utilities to the advertisers without decreasing the revenue to the search engine. The bid optimizer is positioned as a key value added tool the search engine provides to the advertisers. The proposed bid optimizer algorithm transforms the reported...