Bargaining dynamics in exchange networks

Mohsen Bayati, Christian Borgs, Jennifer Chayes, Yash Kanoria and Andrea Montanari

Journal of Economic Theory, 2015, vol. 156, issue C, 417-454

Abstract: We consider a one-sided assignment market or exchange network with transferable utility and the dynamics of bargaining in such a market. Our dynamical model is local, involving iterative updates of ‘offers’ based on estimated best alternative matches, in the spirit of pairwise Nash bargaining. Agents are not strategic in our model. We establish that when a balanced outcome (a generalization of the pairwise Nash bargaining solution to networks) exists, our dynamics converges rapidly to such an outcome.

Keywords: Nash bargaining; Network; Dynamics; Convergence; Matching; Assignment (search for similar items in EconPapers)
JEL-codes: C78 (search for similar items in EconPapers)
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (12)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0022053114000258
Full text for ScienceDirect subscribers only

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:eee:jetheo:v:156:y:2015:i:c:p:417-454

DOI: 10.1016/j.jet.2014.02.007

Access Statistics for this article

Journal of Economic Theory is currently edited by A. Lizzeri and K. Shell

More articles in Journal of Economic Theory from Elsevier
Bibliographic data for series maintained by Catherine Liu ().