Abstract
The theory of equal division payoff bounds in its modified form (SELTEN 1985) has proved to be more successful in the prediction of 3-person characteristic function experiments than various versions of the bargaining set. In this paper the question is raised whether the hypotheses “order of strength” (applied to zero-normalizations) and “exhaustivity” introduced earlier as parts of equal share analysis (SELTEN 1972) lead to improvements of predictions, if they are added to other theories. Order of strength improves predictions for games where one-person coalitions receive zero-payoffs, but not for other games. Exhaustivity improves predictions for experimental procedures with free verbal communication but if communication is restricted to the exchange of formal offers, predictions are better without exhaustivity as an additional hypothesis. These conclusions are based on reevaluation of 11 data sets from various published and unpublished sources.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Preview
Unable to display preview. Download preview PDF.
References
Albers, W./ Albers, G. (1983): On the Prominence Structure of the Decimal System, in: R.W. Scholz (ed.): Decision Making under Uncertainty, Elsevier Science Publishers B.V. (North Holland), pp. 271–287.
Aumann, R.J./ Maschler, M. (1964): The Bargaining Set for Cooperative Games, in: M. Dresher, L.S. Shapley and A.W. Tucker (eds.): Advances in Game Theory, Princeton University Press, Princeton N.J., pp. 443–476.
Henss, R./ Momper, M. (1985): Neue Ansätze zur Erforschung des Verhandlungsverhaltens in experimentellen 3-Personen-Spielen, Arbeiten der Fachrichtung Psychologie Nr. 97, Universität des Saarlandes, Saarbrücken.
Kahan, J.P./ Rapoport, Amn. (1974): Tests of the Bargaining Set and the Kernel Models in Three-Person Games, in: An. Rapoport (ed.): Game Theory as a Theory of Conflict Resolution, D. Reidel Pub. Co., pp. 119–159
Kahan, J.P./ Rapoport, Amn. (1977): When you don’t need to Join: The Effects of Guaranteed Payoffs on Bargaining in Three-Person Cooperative Games, Theory and Decision, 8, pp. 339–362.
Kahan, J.P./ Rapoport, Amn. (1984): Theories of Coalition Formation, Lawrence Erlbaum Associates, Publishers, Hillsdale, N.J. — London.
Leopold-Wildburger, U. (1985): Effects of the Essential Offers in 3-Person Characteristic Function Games, in: M.J. Beckmann, K.-W. Gaede, K. Ritter and H. Schneeweiss (eds.): Methods of Operations Research 54, A. Hain, München, pp. 403–413.
Maschler, M. (1963): The Power of a Coalition, Management Science, 10, pp. 8–29.
Maschler, M. (1978): Playing an N-Person Game, an Experiment, in: H. Sauermann (ed.): Coalition Forming Behavior, Contributions to Experimental Economics, Vol. 8, J.C.B. Mohr, Tübingen, pp. 231–328.
Medlin, S.M. (1976): Effects of Grand Coalition Payoffs on Coalition Formation in 3-Person Games, Behavioral Science, 21, pp. 48–61.
Murnighan, J.K./ Roth, A.E. (1977): The Effects of Communication and Information Availability in an Experimental Study of a Three-Person Game, Management Science, 23, pp. 1336–1348.
Rapoport, Amn./ Kahan, J. P. (1976): When Three isn’t Always Two against One: Coalitions in Experimental Three-Person Games, Journal of Experimental Social Psychology, 12, pp. 253–273.
Riker, W.H. (1967): Bargaining in a Three-Person Game, American Political Science Review, 61, pp. 642–656.
Selten, R. (1972): Equal Share Analysis of Characteristic Function Experiments, in H. Sauermann (ed.): Contributions to Experimental Economics, Vol. III, J.C.B. Mohr, Tübingen, pp. 130–165.
Selten, R. (1978): The Equity Principle in Economic Behavior, in W. Gottinger and W. Leinfellner (eds.): Decision Theory and Social Ethics, Issues in Social Choice, Reidel, Dordrecht, pp. 289–301.
Selten, R./ Krischker, W. (1983): Comparison of Two Theories for Characteristic Function Experiments, in R. Tietz (ed.): Aspiration Levels in Bargaining and Economic Decision Making, Springer Lecture Notes in Economics and Mathematical Systems, No. 213, Berlin — Heidelberg — New York — Tokyo, pp. 259–264.
Selten, R. (1983): Equal Division Payoff Bounds for 3-Person Characteristic Function Experiments, in R. Tietz (ed.): Aspiration Levels in Bargaining and Economic Decision Making, Springer Lecture Notes in Economics and Mathematical Systems, No. 213, Berlin — Heidelberg — New York — Tokyo, pp. 2 65–275.
Selten, R. (1985): Equity and Coalition Bargaining in Experimental 3-Person Games, Institut für Gesellschafts- und Wirtschaftswissenschaften, Universität Bonn, Working Paper No. 154.
Siegel, S. (1957): Nonparametric Statistics for the Behavioral Sciences, McGraw-Hill, New York — Toronto — Tokyo.
Tietz, R. (1984): The Prominence Standard, Part I, Discussion Paper A18, Professur für Volkswirtschaftslehre, insbesondere Verhaltensforschung, Universität Frankfurt/M.
Author information
Authors and Affiliations
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 1988 Springer-Verlag Berlin Heidelberg
About this paper
Cite this paper
Selten, R., Uhlich, G.R. (1988). Order of Strength and Exhaustivity as Additional Hypotheses in Theories for 3-Person Characteristic Function Games. In: Tietz, R., Albers, W., Selten, R. (eds) Bounded Rational Behavior in Experimental Games and Markets. Lecture Notes in Economics and Mathematical Systems, vol 314. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-48356-1_17
Download citation
DOI: https://doi.org/10.1007/978-3-642-48356-1_17
Publisher Name: Springer, Berlin, Heidelberg
Print ISBN: 978-3-540-50036-0
Online ISBN: 978-3-642-48356-1
eBook Packages: Springer Book Archive