Threat bargaining games with a variable population

Abstract

In this paper we establish links between desirable properties satisfied by familiar solutions to bargaining games with a variable population and the Nash equilibrium concept for threat bargaining games. We introduce three new concepts for equilibrium threat strategies called strategic stability, strategic monotonicity with respect to changes in the number of agents and strategic constancy. Our primary objective in this paper is to show that familiar assumptions satisfied by bargaining games with a variable population yield equilibrium threat strategies which satisfies in a very natural way the concepts we have introduced.