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A Simplified Bargaining Model for the n-Person Cooperative Game

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Part of the book series: Theory and Decision Library ((TDLU,volume 28))

Abstract

The bargaining model I propose to discuss in this paper2 is a simplified and, as I hope, improved version of my bargaining model published in the Princeton Contributions (see [3]). Like my earlier model, this one is also a generalization of the Nash solution for the two-person cooperative game [6, 7] to the n-person cooperative game; and it is at the same time also a generalization of (a somewhat modified form of) the Shapley value [8] from the transferable-utility3 case to the general case.

Manuscript received November 28, 1960, revised July 31, 1962.

An earlier version of this paper was written while the author was at the Australian National University, Canberra, Australia. It was read at the Stanford meeting of the Econometric Society in August, 1960. The author is indebted to Professor Leonid Hurwicz, of the University of Minnesota, and to Professor Gerard Debreu, now of the University of California at Berkeley, for helpful comments.

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References

  1. Debreu, G., “A Social Equilibrium Existence Theorem,” Proceedings of the National Academy of Sciences, XXXVIII (August, 1952 ), 886–93.

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  2. Harsanyi, John C., “Approaches to the Bargaining Problem before and after the Theory of Games: A Critical Discussion of Zeuthen’s, Hicks’, and Nash’s Theories,” Econometrica, XXIV (April, 1956 ), 144–57.

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  3. Harsanyi, John C., “A Bargaining Model for the Cooperative n-Person Game,” in Contributions to the Theory of Games, IV, ed. A. W. Tucker and R. D. Luce ( Princeton: Princeton University Press, 1959 ), 325–55.

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  4. Isbell, J. R., “A Modification of Harsanyi’s Bargaining Model,” Bulletin of the American Mathematical Society, LXVI (March, 1960 ), 70–73.

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  5. Luce R. D. and H. Raiffa, Games and Decisions (New York: John Wiley and Sons, Inc., 1957 ).

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  6. Nash, J. F., “The Bargaining Problem,” Econometrica, XVIII (April, 1950 ), 155–62.

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  7. Nash, J. F., “Two-person Cooperative Games,” Econometrica, XXI (January, 1953 ), 128–40.

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  8. Shapley, L. S., “A Value for n-Person Games,” in Contributions to the Theory of Games, II, ed. H. W. Kuhn and A. W. Tucker ( Princeton: Princeton University Press, 1953 ) 307–17.

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© 1982 Springer Science+Business Media Dordrecht

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Harsanyi, J.C. (1982). A Simplified Bargaining Model for the n-Person Cooperative Game. In: Papers in Game Theory. Theory and Decision Library, vol 28. Springer, Dordrecht. https://doi.org/10.1007/978-94-017-2527-9_3

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  • DOI: https://doi.org/10.1007/978-94-017-2527-9_3

  • Publisher Name: Springer, Dordrecht

  • Print ISBN: 978-90-481-8369-2

  • Online ISBN: 978-94-017-2527-9

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