The paper starts by proposing an explicit and intuitive bargaining process to analyze coalitional externalities, which we then use to generate a value allocation extending the Shapley value to partition function from games, the Rational Belief Shapley value (RBS). We investigate the strategic foundation of the value by constructing a mechanism implementing it. It extends existing models of mult...

In a framework allowing infinitely many individuals, I prove that coalitionally strategyproof social choice functions satisfy “tops only.” That is, they depend only on which alternative each individual prefers the most, not on which alternative she prefers the second most, the third, . . . , or the least. The functions are defined on the domain of profiles measurable with respect to a Boolean a...

The constrained egalitarian solution of Dutta and Ray (1989) for TUgames is extended to asymmetric cases, using the notion of weight systems as in Kalai and Samet (1987,1988). This weighted constrained egalitarian solution is based on the weighted Lorenz-criterion as an inequality measure. It is shown that in general there is at most one such weighted egalitarian solution for TU-games. Existenc...

In this paper we provide a general model of ‘quaternary’dichotomous voting rules (QVRs), namely, voting rules for making collective dichotomous decisions (to accept or reject a proposal), based on vote pro…les in which four options are available to each voter: voting (‘yes’, ‘no’or ‘abstaining’) or staying home and not turning out. The model covers most of actual real-world dichotomus rules, wh...

In this paper we introduce a strategic form model in which cooperation structures and divisions of the payoffs are determined simultaneously. We analyze the cooperation structures and payoff divisions that result according to Nash equilibria, strong Nash equilibria, and coalition proof Nash equilibria. We find that no cycle will be formed if a player claims a positive amount for the formation o...

The set of competitive allocations in an exchange economy with indivisible goods of Shapley and Scarf (1974) is an important solution concept in the literature. In this paper, we consider a farsighted version of the von Neumann and Morgenstern stable set by using the farsighted approach of Chwe (1994) and by modifying the domination relation defined by Wako (1999) to incorporate farsightedness....

We resolve redundancies in the characterizations of the Banzhaf value suggested by Haller (1994, Int J Game Theory 23, 261–281) and Malawski (2002, Int J Game Theory 31:47–67). In particular, we show that the collusion properties employed by them are equivalent. Combined with the dummy player axiom, any of the collusion properties has strong symmetry implications whenever the cardinality of the...

I consider the problem of assigning agents to indivisible objects, in which each agent pays a price for his object and all prices sum to a given constant. The objective is to select an assignment-price pair that is envyfree with respect to the agents’ true preferences. I propose a simple mechanism whereby agents announce valuations for all objects and an envy-free allocation is selected with re...

We investigate the outcome of bargaining when a player’s pay-off from agreement is risky. We find that a risk-averse player typically increases his equilibrium receipts when his pay-off is made risky. This is because the presence of risk makes individuals behave “more patiently” in bargaining. Strong analogies are drawn to the precautionary saving literature. We show that the effect of risk on ...

This paper presents a behavior model of large repeated Bayesian games with an unknown number of players n, correlated types and imperfect monitoring. Each of the n players behaves as if she is negligible in a continuum game, but the game theorist performs a complete Bayesian analysis of what happens with such n players in the real repeated interaction. In addition to performing correct analysis...