Penta, Antonio (2007): Collective Bargaining and Walrasian Equilibrium.

PDF
MPRA_paper_10260.pdf Download (250kB)  Preview 
Abstract
This paper contributes to the research agenda on noncooperative foundations ofWalrasian Equilibrium. A class of barganing games in which agents bargain over prices and maximum trading con straints is considered: It is proved that all the Stationary Sub game Perfect Equilibria of these games implement Walrasian al locations as the bargaining frictions vanish. The main novelty of the result is twofold: (1) it holds for any number of agents; (2) it is robust to di¤erent speci�cations of the bargaining process.
Item Type:  MPRA Paper 

Original Title:  Collective Bargaining and Walrasian Equilibrium 
Language:  English 
Keywords:  strategic bargaining; Walrasian Equilibrium 
Subjects:  C  Mathematical and Quantitative Methods > C7  Game Theory and Bargaining Theory > C78  Bargaining Theory ; Matching Theory D  Microeconomics > D5  General Equilibrium and Disequilibrium > D51  Exchange and Production Economies C  Mathematical and Quantitative Methods > C7  Game Theory and Bargaining Theory > C72  Noncooperative Games 
Item ID:  10260 
Depositing User:  Antonio Penta 
Date Deposited:  02. Sep 2008 12:18 
Last Modified:  01. May 2015 17:29 
References:  Binmore, K. (1987), "Nash Bargaining Theory III": ch.11 in K. Binmore and P. Dasgupta (eds.), The Economics of Bargaining, Blackwell, Oxford and New York. Binmore, K., A. Rubinstein and A. Wolinsky (1987), "The Nash Bargaining Solution in EconomicModelling", RAND Journal of Economics, 17, 17688. Burdett, K. Shi and R.Wright (2001), "Pricing andMatching with Frictions,�Journal of Political Economy, 109, pp.10601085. Cauty, R. (2001), "Solution du Problème de Point Fixe de Schauder", Fundamenta Mathematicae, 170, 23146. K. Chatterjee and H. Sabourian (2000), "Complexity and MultiPerson Bargaining", Econometrica Cournot, A. (1838), Researches into the mathematical principles of the theory of wealth, New York: MacMillan. Dagan, N., R. Serrano and O. Volij (2000), "Bargaining Coalitions and Competition", Economic Theory, Dàvila, J. and J. Eeckhout (2007), "Competitive Bargaining Equilibrium", forthcoming on JET. Debreu, G. and H. Scarf (1961), "A Limit Theorem on the Core of an Economy", International Economic Review, 4:23546 Edgeworth, F.Y. (1881), Mathematical Psychics: An Essay on the Application of Mathematics to the Moral Sciences Gale, D. (1986a), "Bargaining and Competition Part I: Charac terization", Econometrica, 54, 785806. Gale, D. (1986b), "Bargaining and Competition Part II: Existence", Econometrica, 54, 80718. Gale, D. (1987), "Limit Theorems for Markets with Sequential Bargaining", Journal of Economic Theory, 43, 2054. Gale, D. (2000), Strategic Foundations of General Equilibrium, Cambridge, UK: Cambridge University Press,. Gale, D. and H. Sabourian, (2005), "Complexity and Competition", Econometrica, 73, 739769 27 Jevons,W.S. (1879), The Theory of Political Economy, London: MacMillan. Kunimoto, T. and R. Serrano (2004), "Bargaining and Competition Revisited", Journal of Economic Theory, 115, 7888. Mailath, G. J. and L. Samuelson (2006), Repeated Games and LongRun Relationships, New York: Oxford University Press. McLennan, A. and H. Sonneschein (1991), "Sequential Bargaining and as a noncooperative foundation for Walrasian Equilibrium", Econometrica, 59, 13951424. Merlo, A. and R. Wilson (1995), "A Stochastic Model of Sequential Bargaining with Complete Information", Econometrica, 63(2), 371399. Negishi, T. (1989), History of Economic Theory, Amsterdam, North Holland Press. Ok, E. (2007), Real Analysis with Economic Applications, Princeton University Press, Princeton, NJ. Osborne, M. and A. Rubinstein (1990), Bargaining and Markets, San Diego, London, Sydeny and Toronto: Harcourt Brace Jovanovich and Academic Press. Penta, A. (2007), "Sequence of Bilateral Trades and Walrasian Equilibrium", mimeo, UPenn. Postlewaite, A. and D. Schmeidler (1978), "Approximate Efficiency of NonWalrasian Nash Equilibria", Econometrica, 46(1), 127135. Rubinstein, A. (1982), "Perfect Equilibrium in a Bargaining Model", Econometrica, 50, 97109. Rubinstein, A. and A. Wolinsky (1985), "Equilibrium in a a Market with Sequential Bargaining", Econometrica, 53, 113350. Rubinstein, A. and A.Wolinsky (1990), "Decentralized Trading, Strategic Behaviour and the Walrasian Outcome", Review of Econoic Studies, 57, 6378. Sabourian, H. (2004), "Bargaining and markets: complexity and the market outcome", Journal of Economic Theory, 116, 189228. Selten (1975), �Reexamination of the Perfectness Concept for Equilibrium Points in Extensive Games�, International Journal of Game Theory 4, 2555. Shapley, A. and M. Shubik (1977), "Trade Using One Commodity as a Means of Payment", Journal of Political Economy, 85, 93768. Shubik, M. (1973), "Commodity Money, Oligopoly, Credit and Bankruptcy in a General Equilibrium Model", Western Economic Journal, 11, 2438. Stahl, I. (1972) "Bargaining Theory," Economics Research Institute at the Stockholm School of Economics, Van Damme (1983), Re�nements of the Nash Equilibrium Concept, Berlin: SpringerVerlag. Walras, L. (1874), Elements of Pure Economics Yildiz, M. (2005), "Walrasian Bargaining", Games and Economic Behavior, 45(2), 465487.GEB 
URI:  https://mpra.ub.unimuenchen.de/id/eprint/10260 