An Experiment on the Nash Program: Comparing two Mechanisms Implementing the Shapley Value

Michela Chessa, Nobuyuki Hanaki, Aymeric Lardon and Takashi Yamada
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Takashi Yamada: Yamaguchi University, Japan

No 2021-07, GREDEG Working Papers from Groupe de REcherche en Droit, Economie, Gestion (GREDEG CNRS), Université Côte d'Azur, France

Abstract: We experimentally compare two well-known mechanisms inducing the Shapley value as an ex ante equilibrium outcome of a noncooperative bargaining procedure: the demand-based Winter's demand commitment bargaining mechanism and the offer-based Hart and Mas-Colell bidding procedure. Our results suggest that, on the one hand, the offer-based Hart and Mas-Colell mechanism better induces players to cooperate and to agree on an efficient outcome; on the other hand, the demand-based Winter mechanism better implements allocations that reflect players' effective bargaining power.

Keywords: Nash Program; Bargaining procedures; Shapley value; Experiments (search for similar items in EconPapers)
JEL-codes: C71 C72 C90 D82 (search for similar items in EconPapers)
Pages: 41 pages
Date: 2021-02
New Economics Papers: this item is included in nep-des, nep-exp and nep-gth
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:gre:wpaper:2021-07

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