Dynamic bargaining and stability with veto players

This note examines the structure of stationary bargaining equilibria in the finite framework of Anesi (2010). The main result establishes a tight connection between the set of equilibrium absorbing points and the von Neumann-Morgestern solutions: assuming that players are patient, that the voting ru...

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Main Authors: Anesi, Vincent, Duggan, John
Format: Article
Published: Elsevier 2017
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Online Access:https://eprints.nottingham.ac.uk/33085/
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author Anesi, Vincent
Duggan, John
author_facet Anesi, Vincent
Duggan, John
author_sort Anesi, Vincent
building Nottingham Research Data Repository
collection Online Access
description This note examines the structure of stationary bargaining equilibria in the finite framework of Anesi (2010). The main result establishes a tight connection between the set of equilibrium absorbing points and the von Neumann-Morgestern solutions: assuming that players are patient, that the voting rule is oligarchical, and that there is at least one veto player with positive recognition probability, a set of alternatives corresponds to the absorbing points of an equilibrium if and only if it is a von Neumann-Morgenstern solution. We also apply our analysis of ergodic properties of equilibria to the persistent agenda setter environment of Diermeier and Fong (2012). We show that all equilibria are essentially pure, and we extend their characterization of absorbing sets to allow an arbitrary voting rule and by removing the restriction to pure strategy equilibira.
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spelling nottingham-330852020-05-04T19:57:19Z https://eprints.nottingham.ac.uk/33085/ Dynamic bargaining and stability with veto players Anesi, Vincent Duggan, John This note examines the structure of stationary bargaining equilibria in the finite framework of Anesi (2010). The main result establishes a tight connection between the set of equilibrium absorbing points and the von Neumann-Morgestern solutions: assuming that players are patient, that the voting rule is oligarchical, and that there is at least one veto player with positive recognition probability, a set of alternatives corresponds to the absorbing points of an equilibrium if and only if it is a von Neumann-Morgenstern solution. We also apply our analysis of ergodic properties of equilibria to the persistent agenda setter environment of Diermeier and Fong (2012). We show that all equilibria are essentially pure, and we extend their characterization of absorbing sets to allow an arbitrary voting rule and by removing the restriction to pure strategy equilibira. Elsevier 2017-05 Article PeerReviewed Anesi, Vincent and Duggan, John (2017) Dynamic bargaining and stability with veto players. Games and Economic Behavior, 103 . pp. 30-40. ISSN 0899-8256 Bargaining; Endogenous status quo; Markov perfect equilibrium; Von Neumann–Morgenstern solution http://www.sciencedirect.com/science/article/pii/S0899825616300252 doi:10.1016/j.geb.2016.04.010 doi:10.1016/j.geb.2016.04.010
spellingShingle Bargaining; Endogenous status quo; Markov perfect equilibrium; Von Neumann–Morgenstern solution
Anesi, Vincent
Duggan, John
Dynamic bargaining and stability with veto players
title Dynamic bargaining and stability with veto players
title_full Dynamic bargaining and stability with veto players
title_fullStr Dynamic bargaining and stability with veto players
title_full_unstemmed Dynamic bargaining and stability with veto players
title_short Dynamic bargaining and stability with veto players
title_sort dynamic bargaining and stability with veto players
topic Bargaining; Endogenous status quo; Markov perfect equilibrium; Von Neumann–Morgenstern solution
url https://eprints.nottingham.ac.uk/33085/
https://eprints.nottingham.ac.uk/33085/
https://eprints.nottingham.ac.uk/33085/