Demand bargaining and proportional payoffs in majority games (Q632962): Difference between revisions

This paper studies a majoritarian bargaining model in which players make payoff demand in decreasing order of voting weight. The unique subgame perfect equilibrium outcome is such that the minimal winning coalition of the players that move first forms with payoffs proportional to the voting weights. This result advances previous analysis in terms of one or more of: the simplicity of the extensive form; the range of the majority games covered; the equilibrium concept.