Herings P.J.J.; Meshalkin A.V.; Predtetchinski A. - Graduate School of Business and Economics (GSBE), … - 2013
We study the division of a surplus under majoritarian bargaining in the three-person case. In a stationary equilibrium as derived by Baron and Ferejohn 1989, the proposer offers one third times the discount factor of the surplus to a second player and allocates no payoff to the third player, a...