Perturbed Adaptive Dynamics in Coalition Form Games

Players adaptively learn how to bargain. A characteristic function describes the available surplus. The underlying bargaining game extends the Nash demand game by allowing subcoalitions to reach an agreement. Players' demands must be multiples of a money unit. We show that stochastically stable allocations (SSA) (i.e., allocations that are most stable to unlikely errors) are a subset of the core. Uniqueness does not obtain even when the money unit becomes arbitrarily small. Nonetheless, every SSA is related to the allocation that maximizes the product of players' utilities over the core; i.e., constrained egalitarian solution for TU-games