Roman, Mihai Daniel (2008): Entreprises behavior in cooperative and punishment‘s repeated negotiations. Published in: Journal of Applied Quantitative Methods No. 1/2009 (30. January 2009): pp. 116.

PDF
MPRA_paper_37527.pdf Download (206kB)  Preview 
Abstract
Our paper considers a “negotiation game” between two players which combines the features of twoplayers alternating offers bargaining and repeated games. Generally, the negotiation game in general admits a large number of equilibriums but some of which involve delay and inefficiency. Thus, complexity and bargaining in tandem may offer an explanation for cooperation and efficiency in repeated games. The Folk Theorem of repeated games is a very used result that shows if players are enough patience then it is possible to obtain a cooperative equilibrium of the infinite repeated game. We proof a new folk theorem for finitely repeated games and also we find new conditions (under stage number and minimum discount factor value) such that players cooperate at least one period in cooperativepunishment repeated games. Finally we present a studycase for Cournot oligopoly situation for n enterprises behavior under finitely and infinitely repeated negotiations. We found for this situation discount factor depends only on players number, not on different player’s payoffs.
Item Type:  MPRA Paper 

Original Title:  Entreprises behavior in cooperative and punishment‘s repeated negotiations 
Language:  English 
Keywords:  Negotiation Game, Repeated Game, Bargaining, Folk theorem, Bounded Rationality, Cournot oligopoly 
Subjects:  C  Mathematical and Quantitative Methods > C7  Game Theory and Bargaining Theory > C78  Bargaining Theory ; Matching Theory L  Industrial Organization > L1  Market Structure, Firm Strategy, and Market Performance > L13  Oligopoly and Other Imperfect Markets D  Microeconomics > D4  Market Structure, Pricing, and Design > D43  Oligopoly and Other Forms of Market Imperfection C  Mathematical and Quantitative Methods > C7  Game Theory and Bargaining Theory > C73  Stochastic and Dynamic Games ; Evolutionary Games ; Repeated Games 
Item ID:  37527 
Depositing User:  Mihai Daniel Roman 
Date Deposited:  21. Mar 2012 13:33 
Last Modified:  02. May 2015 17:30 
References:  Abreu, D., A. Rubinstein The Structure of Nash Equilibria in Repeated Games with Finite Automata," Econometrica, 56, 1988, p.125982. Anderlini, L., Sabourian, H., "Cooperation and Effective Computability," Econometrica, Econometric Society, vol. 63(6), 1995. p. 133769, Aoki M., "Modeling Aggregate Behavior and Fluctuations in Economics: Stochastic Views of Interacting Agents," UCLA Economics Online Papers 142, UCLA Department of Economics. 2001. AshkenaziGolan G., Confession and pardon in repeated games with communication, Mimeo, 2004. Aumann, Robert J, "An Axiomatization of the Nontransferable Utility Value," Econometrica, Econometric Society, vol. 53(3), 1985 p. 599612, Benoit J.P., Krishna V., Folk Theorem for Finitely Repeated Games: BenoitKrishna (1985), Econometrica 53, 1985, pp. 905–92 Benoit J.P., Krishna V., Renegotiation in finitely repeated games, Econometrica 61 , 1993, pp. 303–323 Bernheim B. D., Whinston, M. D. "Multimarket Contact and Collusive Behavior," RAND Journal of Economics, The RAND Corporation, vol. 21(1), 1990 p. 126, Bhaskar V., Obara I., Beliefbased equilibria in the prisoners’ dilemma with private monitoring, J. Econ. Theory 102 ,2002, p. 16–39. Busch, LA.,Q.Wen, Perfect Equilibria in a Negotiation Model," Econometrica, 63, 1995, p. 54565. Compte O., Communication in repeated games with imperfect private monitoring, Econometrica 66 ,1998, 597– 626. Ely J.C., Välimäki J., A robust folk theorem for the prisoner’s dilemma, J. Econ. Theory 102 (1) ,2002, 84–105. Fearon J.D., Laitin D., Explaining interethnic cooperation. American Political Science Review 90 (December): ,1996, p. 71535. Fong. Y., Surti J. The optimal degree of cooperation in the repeated Prisoners’ Dilemma with side payments , Games and Economic Behavior YGAME:1606, 2008, p. 116, Fudenberg D., Levine D.K., Efficiency and observability with longrun and shortrun players, J. Econ. Theory 62 ,1994, p. 103–135. Fudenberg D., Levine D.K., The Nashthreats folk theorem with communication and approximate common knowledge in two player games, J. Econ. Theory 132 , 2007, 461–473. Fudenberg, D. and E. Maskin “The Folk Theorem in repeated games with discounting and with incomplete information”, Econometrica, 54, 1986, p. 533 554. Ghatak, M. & Guinnane, T. W., "The economics of lending with joint liability: theory and practice," Journal of Development Economics, 60 ,1999, p. 195228. Hömer J., Olszewski W., The folk theorem for games with private almostperfect monitoring, Econometrica 74 ,2006, p. 1499–1544. Kandori M., Matsushima H., Private observation, communication and collusion, Econometrica 66 ,1998, p. 627–652. Lehrer, E., Pauzner, A., Repeated games with differential time preferences. Econometrica 67, 1999, p. 393–412 Mailath G.J., Morris S., Coordination failure in repeated games with almostpublic monitoring, Theoret. Econ. 1 ,2006, p. 311–340. Mailath G.J., Morris S., Repeated games with almostpublic monitoring, J. Econ. Theory 102 (1) , 2002, p. 189–228. Matsushima H., Repeated games with private monitoring: Two players, Econometrica 72 ,2004, p. 823–852. McLean R., Obara I., Postlewaite A., Informational smallness and private monitoring in repeated games, Mimeo UCLA, 2005. Obara I., Folk theorem with communication, Journal of Economic Theory 144 , 2009, p. 120–134 Okada A. The possibility of cooperation in an nperson prisoners' dilemma with institutional arrangements, Public Choice, Volume 77, Number 3 / November, 1993, p. 629656 Olson E., The logic of collective action. Cambridge: Harvard University Press. 1965. Piccione, M. Finite Automata Equilibria with Discounting," Journal of Economic Theory, 56, 1992, p. 18093. Piccione, M., A. Rubinstein Finite Automata Play a Repeated Extensive Game," Journal of Economic Theory, 61, 1993, p. 1608. Roman, M, Marin, D, Stancu, S, Teoria jocurilor pentru economisti, Ed. ASE, Bucuresti, 2005 Roman, M. , Roman, M. , Fiscal System Competition and Inefficiency of Public Good Production, Economic Computation and Economic Cybernetics Studies and Reserch, vol. 36, no. 14, 2003, p. 7787 Roman, M. Teoria Jocurilor si a negocierilor, Ed. AISTEDA, Bucuresti, 2000 Rubinstein, A. Finite Automata Play the Repeated Prisoner's Dilemma," Journal of Economic Theory, 39, 1986 ,p. 8396. Rubinstein, A. Perfect Equilibrium in a Bargaining Model," Econometrica, 50, 1982, p. 97109. Rubinstein, A., Strong perfect equilibrium in supergames. Int. J. Game Theory 9, 1979, p. 1–12. Sabourian, H. Bargaining and Markets: Complexity and the Competitive Outcome," Journal of Economic Theory Elsevier, vol. 116(2), 2004, p. 189228 Thorsten, J.T., Lim J. J., Sticks and Carrots: Two Incentive Mechanisms Supporting IntraGroup Cooperation, in Economic Letters, 2009, p. 18 Wen, Q., The “folk theorem” for repeated games with complete information. Econometrica 62, 1994, p. 949–954. 
URI:  http://mpra.ub.unimuenchen.de/id/eprint/37527 