Title

Conflict Leads to Cooperation in Nash Bargaining

Authors

Kareen Rozen

Document Type

Discussion Paper

Publication Date

3-1-2008

CFDP Number

1641

CFDP Revision Date

2009-06-01

CFDP Pages

17

Abstract

We consider a multilateral Nash demand game where short-sighted players come to the bargaining table with requests for both coalition partners and the potentially generated resource. We prove that group learning leads with probability one to complete cooperation and a strictly self-enforcing allocation (i.e., in the interior of the core). Highlighting group dynamics, we demonstrate that behaviors which appear destructive can themselves lead to beneficial and strictly self-enforcing cooperation.

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