The Dummy Paradox of the Bargaining Set

Authors: 
Bezalel Peleg & Peter Sudholter
Abstract: 

By means of an example of a superadditive 0-normalled game, we show that the maximum payoff to a dummy in the bargaining set may decrease when the marginal contribution of the dummy to the grand coalition becomes positive.

Date: 
June, 2001
Published in: 
International Journal of Mathematics, Game Theory and Algebra, 12 (2002), 443-446. Also in L.A. Petrosjan & V.V. Mazalov (eds.) Game Theory and Applications, Vol. 8, Nova Science Publishers, New York (2002),119-124.
Number: 
256