YALE DEPARTMENT OF ECONOMICS
CONFLICT LEADS TO COOPERATION IN NASH BARGAINING Kareen Rozen March 2008 We consider a Nash demand game where N players come to the bargaining
table with requests for coalition partners and a potentially generated resource. We show
that group learning leads to complete cooperation and an interior core allocation with
probability one. Our arguments highlight group dynamics and demonstrate how destructive
group behaviors exclusion, divide and conquer tactics, and scapegoating can
propel groups toward beneficial and self-enforcing cooperation. |