The cooperative solution concept introduced here, the Stable Demand Set, contains the Core and is included in the Zhou Bargaining Set, eliminating the "dominated" coalition structures. The demand vectors belonging to the Stable Demand Set are self-stable. In the class of constant-sum homogeneous...

Power indices suggest that adding new members to a voting body may increase the power of an existing member, even if the number of votes of all existing members and the decision rule remain constant. This phenomenon is known as the paradox of new members. This paper shows that the paradox has...

We study a legislative bargaining model in which the parties make payoff demands in decreasing order of voting weight. The unique subgame perfect equilibrium outcome is such that the minimal winning coalition of the parties that move first forms with payoffs proportional to the voting weights

It is well known that being the proposer or agenda setter is advantagenous in many collective decision making situations. In the canonical model of distributive bargaining (Baron and Ferejon, 1989), proposers are certain of being part of the coalition that forms, and, conditional on being in the...

Inequity aversion models have been used to explain equitable payoff divisions in bargaining games. I show that inequity aversion can actually increase the asymmetry of payoff division if unanimity is not required. This is due to the analogy between inequity aversion and risk aversion. Inequity...

This paper examines the relationship between voting weights and expected equilibrium payoffs in legislative bargaining and provides a necessary and sufficient condition for payoffs to be proportional to weights. This condition has a natural interpretation in terms of the supply and demand for...

This paper studies an allocation procedure for coalitional games with veto players. The procedure is similar to the one presented by Arin and Feltkamp (2007), which is based on Dagan et al. (1997). A distinguished player makes a proposal that the remaining players must accept or reject, and...