Coalitional games with veto players: Myopic and farsighted behavior

Francisco Javier Arin Aguirre, Vicent Feltkamp and Maria Montero

IKERLANAK from Universidad del País Vasco - Departamento de Fundamentos del Análisis Económico I

Abstract: This paper studies an allocation procedure for coalitional games with veto players. The procedure is similar to the one presented by Dagan et al. (1997) for bankruptcy problems. According to it, a player, the proposer, makes a proposal that the remaining players must accept or reject, and con ict is solved bilaterally between the rejector and the proposer. We allow the proposer to make sequential proposals over several periods. If responders are myopic maximizers (i.e. consider each period in isolation), the only equilibrium outcome is the serial rule of Arin and Feltkamp (2012) regardless of the order of moves. If all players are farsighted, the serial rule still arises as the unique subgame perfect equilibrium outcome if the order of moves is such that stronger players respond to the proposal after weaker ones.

Keywords: veto players; bargaining; myopic behavior; serial rule (search for similar items in EconPapers)
Date: 2013-10-10
New Economics Papers: this item is included in nep-gth and nep-hpe
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://addi.ehu.eus/handle/10810/11102 (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:ehu:ikerla:11102

Ordering information: This working paper can be ordered from
Dpto. de Fundamentos del Análisis Económico I, Facultad de CC. Económicas y Empresariales, Universidad del País Vasco, Avda. Lehendakari Aguirre 83, 48015 Bilbao, Spain

Access Statistics for this paper

More papers in IKERLANAK from Universidad del País Vasco - Departamento de Fundamentos del Análisis Económico I Contact information at EDIRC.
Bibliographic data for series maintained by Alcira Macías Redondo ().