Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/154897
Authors: 
Morelli, Massimo
Year of Publication: 
1998
Series/Report no.: 
Nota di Lavoro, Fondazione Eni Enrico Mattei 39.1998
Abstract: 
This paper provides a co-operative as well as a non-cooperative analysis of weighted majority games. The co-operative solution concept introduced here, the Stable Demand Set, yields a meaningful selection within the Mas-Colell Bargaining Set, it contains the Core, it eliminates the "dominated" coalition structures, and has sharp implications for weighted majority games: for such games it is non-empty, it predicts a unique stable demand vector for every homogeneous representation, and every agent within the winning coalition is expected to obtain a payoff share proportional to her relative bargaining power. The set of stable demand vectors coincides with the set of balanced aspirations defined in Bennet (1983), but it is obtained in the space of individually rational payoff configurations, rather than restricting attention to the aspirations domain. I then define two different kinds of non-cooperative coalitional bargaining games, showing that the set of Symmetric Stationary Subgames Perfect Equilibria of one of them, and the set of Subgame Perfect Equilibria of the other, have a one-to-one correspondence with the Stable Demand Set for homogeneous weighted majority games.
Subjects: 
Aspirations
Demands
Bargaining set
Weighted majority games
Coalitional bargaining
Proportional payoffs
JEL: 
C71
C72
C78
Document Type: 
Working Paper

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