The Burning Coalition Bargaining Model
Marco Rogna
Social Choice and Welfare, 2022, vol. 59, issue 3, No 8, 735-768
Abstract:
Abstract The paper presents a coalitional bargaining model, the Burning Coalition Bargaining Model, having a peculiar type of partial breakdown. In fact, in this model, the rejection of a proposal causes the possibility of the proposed coalition to vanish, rather than triggering the end of all negotiations or the exclusion of some players from the game, as already proposed in the literature. Under this type of partial breakdown and adopting a standard rejecter-proposes protocol, 0-normalized, 3-players games are examined for extreme values of the breakdown probability. When such probability is equal to one, efficiency is more difficult to obtain than in models adopting discounting and the first mover advantage is strongly diminished. Furthermore, when an efficient outcome is attained, the final distribution of payoffs reflects the strength of players in the game, with strength being represented by belonging to more valuable coalitions. The same feature is retained when considering a probability of breakdown approaching zero.
Date: 2022
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Persistent link: https://EconPapers.repec.org/RePEc:spr:sochwe:v:59:y:2022:i:3:d:10.1007_s00355-022-01409-3
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DOI: 10.1007/s00355-022-01409-3
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