Efficiency and surplus distribution in majoritarian reputational bargaining

• 成果类型: Article
• 署名作者: Ma, Zizhen
• 署名单位: Wuhan University
• 刊物名称: JOURNAL OF ECONOMIC THEORY
• ISSN/ISSBN: 0022-0531
• DOI: 10.1016/j.jet.2023.105649
• 发表日期: 2023
• 关键词: Reputational bargaining; Legislative bargaining

摘要

This paper studies majoritarian reputational bargaining. Three agents bargain over the division of one dollar under majority rule, and proposers are randomly chosen. Each agent has private information about whether she is a rational type that maximizes her expected share of the dollar or an obstinate type that commits to claiming a certain share of the dollar. Efficiency and surplus distribution in majoritarian reputational bargaining may differ from their counterparts in bilateral reputational bargaining. In a particular equilibrium of our majoritarian game, efficiency loss vanishes asymptotically as the agents become patient, and bargaining ends immediately if all agents are rational. Moreover, the agent who has the lowest positive ex ante probability of being obstinate achieves the highest ex ante payoff, when such probabilities for all agents are sufficiently low.(c) 2023 Published by Elsevier Inc.