We study a legislative bargaining game in which failure to agree in a given round may result in a breakdown of negotiations. In that case, each player receives an exogenous ‘disagreement value'. We characterize the set of stationary subgame perfect equilibria under all q-majority rules. Under...

This paper shows that Smith has applied a wrong theory to explain public good financing. The result will be insufficient fund for any public project. Instead of encouraging people to honestly reveal their preference, Smith is encouraging them to cheat

This paper shows how VL Smith has destroyed his own perfect theory. Smith used utility maximization to prove that the last person must take up the balance of a public construction cost. When the resulting equilibrium quantity is different from the given one, a new average quantity breaks up the...

A desirable house allocation rule is flexible in its response to changes in agents' preferences. We propose a specific notion of this flexibility. An agent is said to be `swap-sovereign' over a pair of houses at a profile of preferences if the rule assigns her one of the houses at that profile...

We reinterpret the `bossiness' of a private-goods allocation rule (Satterthwaite and Sonneschein, 1981) as the ability of an agent to `influence' another's welfare with no change to her own welfare. We propose simple conditions on (1) which agents may have influence (`acyclicity' and...

We study an infinite-horizon multilateral bargaining game in which the status quo policy, players' recognition probabilities, and their voting weights are endogenously determined by the previous bargaining outcome. With perfectly farsighted players, we show that the equilibrium long-run outcome...

We study the existence of group strategy-proof stable rules in many-to-many matching markets under responsiveness of agents' preferences. We show that when firms have acyclical preferences over workers the set of stable matchings is a singleton, and the worker-optimal stable mechanism is a...

I provide a sufficient condition for the uniqueness of equilibrium payoffs in a model of stochastic bargaining with unanimity rule and risk-averse players. My Condition (S) implies Condition (C) of Merlo and Wilson (1995) and is easy to verify in applications

We consider the problem of the fair allocation of indivisible goods and money with non-quasi-linear preferences. The purpose of the present study is to examine strategic manipulation under envy-free solutions. We show that under a certain domain-richness condition, each individual obtains the...

In ordinal (probabilistic) assignment problems, each agent reports his preference rankings over objects and receives a lottery defined over those objects. A common efficiency notion, sd-efficiency, is obtained by extending the preference rankings to preferences over lotteries by means of...