A Violation of Monotonicity in a Noncooperative Setting

Maria Montero and Juan Vidal-Puga

No 2012-04, Discussion Papers from The Centre for Decision Research and Experimental Economics, School of Economics, University of Nottingham

Abstract: A power measure is monotone if a player with a larger weight is assigned at least as much power as a player with a smaller weight in the same weighted majority game. Failure of a power index to satisfy monotonicity is often considered a pathological feature. In this paper, we show that monotonicity may fail in the unique subgame perfect equilibrium of a noncooperative bargaining game. A player with a smaller weight may have a higher expected payoff than a player with a larger weight. This is possible even though coalition formation and payoff division are endogenous, all players are rational and there is no asymmetry between the players other than in the weights.

Keywords: monotonicity; noncoopeative (search for similar items in EconPapers)
Date: 2012-04
New Economics Papers: this item is included in nep-gth
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.nottingham.ac.uk/cedex/documents/paper ... on-paper-2012-04.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:not:notcdx:2012-04

Access Statistics for this paper

More papers in Discussion Papers from The Centre for Decision Research and Experimental Economics, School of Economics, University of Nottingham School of Economics University of Nottingham University Park Nottingham NG7 2RD. Contact information at EDIRC.
Bibliographic data for series maintained by Jose V Guinot Saporta ().