We propose and analyze a new solution concept, theR-solution, for three-person, transferable utility, cooperative games. In the spirit of the Nash Bargaining Solution, our concept is founded on the predicted outcomes of simultaneous, two-party negotiations that would be the alternative to the...

We implement a family of efficient proposals to share benefits generated in environments with externalities. These proposals extend the Shapley value to games with externalities and are parametrized through the method by which the externalities are averaged. We construct two slightly different...

In this note we show that no solution to coalition formation games can satisfy a set of axioms that we propose as reasonable. Our result points out that "solutions" to the coalition formation cannot be interpreted as predictions of what would be ìresting pointsî for a game in the way stable...

For each assignment market, an associated bargaining problem is defined and some bargaining solutions to this problem are analyzed. For a particular choice of the disagreement point, the Nash solution and the Kalai-Smorodinsky solution coincide and give the midpoint between the buyers-optimal...

We conduct a laboratory experiment to study how, after a history of decay, cooperation in a repeated voluntary contribution game can be revived in an enduring way. Simply starting the repeated game over - a simple fresh start - leads to an initial increase of cooperation, but to a subsequent new...

The purpose of this paper is to generalize the theory of "equal share analysis", developed by Selten in 1972, to the one in which every player has a positive weight. We show that for any positive vector of weights, it is always possible to find a coalition structure and a payoff vector forming a...

Using a bi-choice graph technique (Klaus and Klijn, 2009), we show that a matching for a roommate market indirectly dominates another matching if and only if no blocking pair of the former is matched in the latter (Proposition 1). Using this characterization of indirect dominance, we investigate...

Existence of von NeumannMorgenstern solutions (stable sets) is proved for any assignment game. For each optimal matching, a stable set is defined as the union of the core of the game and the core of the subgames that are compatible with this matching. All these stable sets exclude third-party...

We introduce a subclass of multi-sided assignment games that embodies markets with different types of firms that produce different types of homogeneous goods. These markets generalize bilateral Bohm-Bawerk horse markets. We describe the geometric and algebraic structure of the core, which is...

We consider environments in which agents can cooperate on multiple issues and externalities are present both within and across issues. We propose a way to extend (Shapley) values that have been put forward to deal with externalities within issues to games where there are externalities within and...