Skip to main content

Bargaining Model of Mutual Deterrence Among Three Players with Incomplete Information

  • Conference paper
  • First Online:
Game Theory and Applications (China GTA 2016, China-Dutch GTA 2016)

Abstract

The tripartite bargaining problem of mutual deterrence has been investigated from the perspective of Rubinstein indefinite bargaining and cooperative game theory. Considering the situation of incomplete information in reality, this paper established a tripartite mutual deterrence bargaining model with unilateral and bilateral incomplete information by introducing incomplete information into the model and defining a discount factor. And particularly, the formula is furnished for calculating the Nash equilibrium distribution of every player under the incomplete information. Finally, an illustrative example is presented to show that the established model is feasible and effective and can provide a new way and method to analyze and solve multi mutual deterrence or conflict problems with incomplete information.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 39.99
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 54.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

Similar content being viewed by others

References

  1. Schelling, T.: Arms and Influence, pp. 120–123. Yale University Press, New Haven (1966)

    Google Scholar 

  2. Nash, J.F.: The bargaining problem. Econometrica 18, 155–162 (1950)

    Article  MathSciNet  MATH  Google Scholar 

  3. Rubinstein, A.: Perfect equilibrium in a bargaining model. Econometrica 50, 97–109 (1982)

    Article  MathSciNet  MATH  Google Scholar 

  4. Kalandrakis, A.: A three-player dynamic majoritarian bargaining game. J. Econ. Theor. 116(2), 194–322 (2004)

    Article  MathSciNet  MATH  Google Scholar 

  5. Calvo-Armengol, A.: A note on three players noncooperative bargaining with restricted pairwise meetings. Econ. Lett. 65(1), 47–54 (1999)

    Article  MathSciNet  MATH  Google Scholar 

  6. Xiang, G.H., Wang, Y.X.: A bargaining model of mutual deterrence with incomplete information. Oper. Res. Manag. Sci. 17(6), 16–19 (2009)

    Google Scholar 

  7. Gong, Z.Q., Xie, Z., Dai, L.: A bargaining model of mutual deterrence between three players. J. Quant. Econ. 32(2), 87–92 (2015)

    MathSciNet  Google Scholar 

  8. Harsanyi, J.C.: Games with incomplete information played by “Bayesian” players. Manag. Sci. 14(3), 159–182 (1967)

    Article  MathSciNet  MATH  Google Scholar 

  9. Yu, W.S.: Game Theory and Economy, pp. 115–127. Higher Education Press, Beijing (2007)

    Google Scholar 

  10. Li, D.F.: Fuzzy Multiobjective Many-Person Decision Makings and Games. National Defense Industry Press, Beijing (2003)

    Google Scholar 

  11. Zagare, F.C., Kilgour, D.M.: Alignment patterns, crisis bargaining, and extended deterrence: a game-theoretic analysis. Int. Stud. Q. 47(4), 587–615 (2003)

    Article  Google Scholar 

  12. Zhang, Z.Y., Li, Z.Y., Long, Y.: Empirical study on enterprise bargaining power in skill-based competitive strategic alliances. J. Syst. Eng. 22(2), 148–155 (2007)

    MATH  Google Scholar 

  13. Zhou, J.X., Wang, Y.: Research on bargaining problem between a disadvantaged wholesaler and a supplier under asymmetric information. J. Syst. Eng. 31(4), 481–493 (2016)

    MATH  Google Scholar 

  14. Li, D.-F.: Multiattribute group decision-making methods with intuitionistic fuzzy sets. In: Li, D.-F. (ed.) Decision and Game Theory in Management With Intuitionistic Fuzzy Sets. SFSC, vol. 308, pp. 251–288. Springer, Heidelberg (2014). doi:10.1007/978-3-642-40712-3_6

    Chapter  Google Scholar 

  15. Fontenay, C.C.D., Gans, J.S.: Bilateral bargaining with externalities. J. Ind. Econ. 62(4), 756–788 (2014)

    Article  Google Scholar 

  16. Bayati, M., Borgs, C., Chayes, J., et al.: Bargaining dynamics in exchange networks. J. Econ. Theor. 156(2), 417–454 (2015)

    Article  MathSciNet  MATH  Google Scholar 

  17. Aghadadashli, H., Wey, C.: Multiunion bargaining: tariff plurality and tariff competition. J. Inst. Theor. Econ. (JITE) 171(4), 666–695 (2015)

    Article  Google Scholar 

  18. Collard-Wexler, A., Gowrisankaran, G., Lee, R.S.: “Nash-in-Nash” bargaining: a microfoundation for applied work. Eur. J. Pharm. Biopharm. 71(2), 339–345 (2014)

    Google Scholar 

  19. An, B., Gatti, N., Lesser, V.: Alternating-offers bargaining in one-to-many and many-to-many settings. Ann. Math. Artif. Intell. 77(1), 1–37 (2016)

    MathSciNet  MATH  Google Scholar 

  20. Abreu, D., Pearce, D., Stacchetti, E.: One-sided uncertainty and delay in reputational bargaining. Theor. Econ. 10(3), 719–773 (2015)

    Article  MathSciNet  Google Scholar 

Download references

Acknowledgement

This work was supported by the Key Project of Natural Science Foundation of China (Grant Nos. 71231003).

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Deng-Feng Li .

Editor information

Editors and Affiliations

Rights and permissions

Reprints and permissions

Copyright information

© 2017 Springer Nature Singapore Pte Ltd.

About this paper

Cite this paper

Xiao, Y., Li, DF. (2017). Bargaining Model of Mutual Deterrence Among Three Players with Incomplete Information. In: Li, DF., Yang, XG., Uetz, M., Xu, GJ. (eds) Game Theory and Applications. China GTA China-Dutch GTA 2016 2016. Communications in Computer and Information Science, vol 758. Springer, Singapore. https://doi.org/10.1007/978-981-10-6753-2_4

Download citation

  • DOI: https://doi.org/10.1007/978-981-10-6753-2_4

  • Published:

  • Publisher Name: Springer, Singapore

  • Print ISBN: 978-981-10-6752-5

  • Online ISBN: 978-981-10-6753-2

  • eBook Packages: Computer ScienceComputer Science (R0)

Publish with us

Policies and ethics