Persistence of Power: Repeated Multilateral Bargaining
نویسنده
چکیده
We develop a model of repeated multilateral bargaining that links cycles via the identity of the agenda setter. In sharp contrast to the standard history-independent equilibrium predictions, in an experiment, we observe stable and persistent coalitions in terms of member identity, allocations to coalition partners, and agenda-setter identity. Our results call into question the validity of restricting attention to static, history-independent strategies in dynamic bargaining games. We show that weakening the standard equilibria concepts to allow players to condition on a single piece of history is enough to generate equilibria which are consistent with observed laboratory outcomes. Date: Current version: November 2016.
منابع مشابه
For Online Publication Persistence of Power: Repeated Multilateral Bargaining
Proof to Proposition 1. We first show that, when players care enough about future rounds, exclusion of a player from future coalitions is a credible threat, sustainable as part of a SPE. Let Z denote an arbitrary subgame of one of our games. We say that player i is “excluded in subgame Z” if in every period t along the path of play of the subgame, xt i = 0. An excluded player receives zero payo...
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