Noncooperative Foundations of the Area Monotonic Solution

S-Tier
Journal: Quarterly Journal of Economics
Year: 1993
Volume: 108
Issue: 1
Pages: 245-258

Score contribution per author:

8.043 = (α=2.01 / 1 authors) × 4.0x S-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Given a finite set of alternatives, players alternate making offers. Player 1 offers some alternative that 2 can accept or veto. If 2 accepts, it is enforced, and the game ends. Otherwise, 2 makes a counteroffer among the remaining alternatives, and so on. If all alternatives are vetoed, a disagreement alternative is enforced. First, we characterize the unique outcome of any subgame perfect equilibrium of this game. Then, we show that this outcome converges to the Area Monotonie Solution if the alternatives are uniformly distributed over the bargaining set, and as the number of alternatives tends to infinity.

Technical Details

RePEc Handle
repec:oup:qjecon:v:108:y:1993:i:1:p:245-258.
Journal Field
General
Author Count
1
Added to Database
2026-01-24