Finite horizon bargaining and the consistent field

Armando Gomes*, Sergiu Hart, Andreu Mas-Colell

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

5 Scopus citations

Abstract

We explore the relationships between noncooperative bargaining games and the consistent value for nontransferable utility (NTU) cooperative games. A dynamic approach to the consistent value is introduced: the consistent vector field. The main contribution is to establish that theconsistent fieldis intimately related to the concept ofsubgame perfectionfor finite horizon noncooperative bargaining games, as the horizon goes to infinity and the cost of delay goes to zero. We then show that in the general NTU case - unlike the transferable utility and pure bargaining cases - the finite horizon subgame perfect equilibria need not approach the consistent value.Journal of Economic LiteratureClassification Numbers: C71, C72.

Original languageEnglish
Pages (from-to)204-228
Number of pages25
JournalGames and Economic Behavior
Volume27
Issue number2
DOIs
StatePublished - May 1999

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