The demand commitment bargaining and snowballing cooperation (Q1341488)

This paper deals with a coalition game model with sequential demands and increasing cooperation readiness (the snowball effect), where the payoff units tend to zero. The main results show that in such games the equilibrium payoff distribution tends to the Shapley value. To derive this result the concepts of strategic equilibria and subgame consistency are used. The general results are applied to the problem of public good consumption.