Bargaining delay under partial breakdowns and externalities

摘要

We consider a noncooperative coalitional bargaining game where partial breakdowns, such as the rejecter of a proposal exiting from the game, take place with a positive probability, and externalities accompany the formation of coalitions. We present an example in which there exists a stationary subgame perfect equilibrium (SSPE) such that a bargaining delay occurs. We also show that under no partial breakdowns or no externalities, delay does not occur in any SSPE. (C) 2019 Elsevier B.V. All rights reserved.