A Theory of Negotiations and Formation of Coalitions

摘要: This paper proposes a new solution concept to three-player coalitional bargaining problems where the underlying economic opportunities are described by partition function. classic problem is modeled as dynamic non-cooperative game in which players make conditional or unconditional offers, and coalitions continue negotiate long there gains from trade. The theory yields unique stationary perfect equilibrium outcome—the negotiation value—and provides unified framework that selects an economically intuitive endogenous coalition structure. For such games pure value coincides with Nash solution, for zero-sum majority voting Shapley value. However, novel situation arises outcome determined pairwise sequential sessions pair of forms natural match. In addition, another exists one pivotal player unconditionally other players, only between can form.