Economics at your fingertips  

Implementing egalitarianism in a class of Nash demand games

Emin Karagözoğlu () and Shiran Rachmilevitch ()
Additional contact information
Shiran Rachmilevitch: University of Haifa

Theory and Decision, 2018, vol. 85, issue 3, No 12, 495-508

Abstract: Abstract We add a stage to Nash’s demand game by allowing the greedier player to revise his demand if the demands are not jointly feasible. If he decides to stick to his initial demand, then the game ends and no one receives anything. If he decides to revise it down to $$1-x$$ 1 - x , where x is his initial demand, the revised demand is implemented with certainty. The implementation probability changes linearly between these two extreme cases. We derive a condition on the feasible set under which the two-stage game has a unique subgame perfect equilibrium. In this equilibrium, there is first-stage agreement on the egalitarian demands. We also study two n-player versions of the game. In either version, if the underlying bargaining problem is “divide-the-dollar,” then equal division is sustainable in a subgame perfect equilibrium if and only if the number of players is at most four.

Keywords: Nash demand game; Divide-the-dollar; Fair division (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3) Track citations by RSS feed

Downloads: (external link) Abstract (text/html)
Access to full text is restricted to subscribers.

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:

Ordering information: This journal article can be ordered from
http://www.springer. ... ry/journal/11238/PS2

DOI: 10.1007/s11238-018-9656-x

Access Statistics for this article

Theory and Decision is currently edited by Mohammed Abdellaoui

More articles in Theory and Decision from Springer
Bibliographic data for series maintained by Sonal Shukla ().

Page updated 2020-09-03
Handle: RePEc:kap:theord:v:85:y:2018:i:3:d:10.1007_s11238-018-9656-x